Ch 19 - Company Meetinngs And Resolution

Question 1

The three different types of meetings :

Answer 1

1. Annual genera meeting (AGM)
2. General meeting (GM)
3. Class meeting (CM)

Question 2

Features of AGM . ( 3 points )

Answer 2

1. Held once an year, called by the directors.
2. Private companies no longer need to conduct AGMs.
3. Public companies must hold a meeting within 6 months of the year end.

Question 3

General meeting can be called when required. It can either be called by the directors or members owning ____ percent of share capital.

Answer 3

5%.

Question 4

Class meetings can be called at a ____ days notice period and held for the Benefit for the members of a particular class of shares.

Answer 4

14 days.

Question 5

What is the notice period for AMGs (PLCs) and GMs (all companies) ?

Answer 5

For AGMs : 21 days

For GMs: 14 days

Question 6

Who is responsible for making sure the rules relating to ‘calling of general meetings’ are met ?
What are those rules ? ( 4 points )

Answer 6

The company secretary.
The rules are :
1. Sufficient notice must be given.
2. Notice must contain all necessary and precise details regarding the meeting.
3. An agenda should be circulated.
4. The company’s auditor should be invited.

Question 7

What are the members rights to call a GM ?
1.Members should own ____ percent of the share capital.
2.Directors must call a meeting within ____ days of receiving the notice.
3.The meeting must be held within ____ days of the directors calling for the meeting.
4.The meeting must be held within ____ weeks of the members’ request.

Answer 7

1. 5%
2. 21 days.
3. 28 days.
4. 7 weeks.

Question 8

Members rights to place an agenda of a meeting :
1. They must own ____ percent of the share capital.
Or
2. ____ members should hold an average of £____ each.

Answer 8

1. 5%
2. 100 members, £100 each.

Question 9

True / false :
Voting works with the principle of ‘one member, one vote.’

Answer 9

True.

Question 10

A poll can be called by :

Answer 10

1. Not less than 5 members.
2. Members with > or = 10% of total voting rights.
3. Members with > or = 10% of paid up share capital.

Question 11

Who is a proxy ?

Answer 11

Proxies are appointed by members who are unable to attend a meeting. They may speak, attend and vote at meetings.

Question 12

All minutes of the meeting must be recorded and kept for a minimum of ____ years.

Answer 12

10 years.

Question 13

In order to remove a director or Auditor, a special resolution should be passed with a notice of _____ days.

Answer 13

28 days.

Question 14

What is the notice period for ordinary resolution ?

Answer 14

14 days.

Question 15

1. Votes cast at a meeting for a special resolution must be ____%.
2. Votes cast at a meeting for an ordinary resolution must be > ____ %.

Answer 15

1. 75%
2. 50%