limited companies 2

Question 1

true or false - the shareholders always appoint new directors

Answer 1

false - directors may be appointed to office by either board resolution or ordinary resolution - depending on whats easier / more efficient (choice)

Question 2

when do directors service contracts require shareholder approval

Answer 2

where they are for a guarenteed term of more than 2 years

Question 3

true or false - the shareholders must always approve a transaction which exceeds 100k in value

Answer 3

false - only where it is between the company and a director ot the company and a person connected with the director

Question 4

what type of resolution is required to remove a director from office

Answer 4

orindary

Question 5

explain what is meant by the term minority shareholder?

Answer 5

a minoirty shareholder holds 50% or less of the companys voting shares.