Authorisation Of AGM

Question 1

Authorisation

Answer 1

Sure, let’s break it down into simpler terms:

1. Approval Needed for Major Decisions:
   
   • The board of directors can’t make certain big decisions without getting approval from the shareholders in a general meeting. This approval can be given for each specific decision or through a general authorization.
2. Types of Decisions Requiring Approval:
   
   • Selling or Leasing Major Assets: If the company wants to sell, lease, or dispose of a significant part of its assets, the board needs shareholder approval. This doesn’t apply if the company’s main business is selling or leasing assets.
   • Selling Subsidiaries: The board needs approval to sell or dispose of a subsidiary company.
   • Debt Relief for Directors: The board can’t forgive, reduce, or extend the repayment time for any debt owed by a director or their relatives without shareholder approval.
3. Special Rules for Listed Companies:
   
   • A listed company (one that is publicly traded) can’t sell or dispose of its main assets in a way that might lead to closing the business or winding up the company without having a solid alternative business plan approved by the board.
4. Validity of Resolutions:
   
   • Any decision (resolution) approved by the shareholders must be carried out within one year. If it’s not implemented within that time, the approval expires and the board would need to seek approval again.

These rules are in place to ensure that significant decisions affecting the company’s future are made with the consent of the shareholders, who are the owners of the company. This promotes transparency, accountability, and protects the interests of all stakeholders.

If you have any specific questions or need further clarification on any point, feel free to ask!