P14 . Meetings of shareholders and members Flashcards
Which members resolutions cannot be passed by written resolution?
Removal of a director under s. 168
Removal of an auditor under s. 510
Process of members’ written resolution
Copies of proposed resolution sent to all eligible members
Members may signify agreement within 28 days with signature
WR is approved when requisite majority of members (in terms of voting rights) have signified agreement
Consent/signature after 28 days has no effect
Other than members, who else must copies of WR be sent to?
Auditor (if the company has one)
Threshold of % voting rights required to require a company to circulate a proposed resolution
5% (unless Articles stipulate a lower threshold)
How long does company have to comply with request to circulate MWR
21 days
If members request WR, who must meet the cost?
Those members, unless company has previously agreed to do so
On what grounds can a company apply to the court for an order not to comply with request to circulate MWR?
The rights conferred by CA2006 2. 292 are being abused
Three main types of members’ meetings
AGMs
GMs
Class meetings
Which type of private company is still required to hold an AGM?
Private companies which are traded companies, or that have it stipulated in their articles
In which period must a public co hold its AGM?
Within 6 months of the ARD
In which period must a traded private company hold an AGM?
Within 9 months of the ARD
Routine items of business for an AGM (6)
Receiving report and accounts
Declaration of final dividend
Election/re-election of directors
Reappointment and remuneration of auditors
Non-binding resolution for approval of directors remuneration report (quoted companies)
Resolution to approve adoption of new remuneration policy (quoted companies)
Non-standard items that may be brought to AGM (4)
Authorise issuing of additional shares
Waiving pre-emption rights
Authorise payment of political donations
Authorise purchasing of own shares
For which co’s may a member have the right to propose a resolution to appoint a person as a director
If there is a right contained in the Articles
When are class meetings held?
Whenever the rights of the holders of that class are to be varied
What is the quorum for class meetings convened for variation of class rights?
Two members, holding at least one-third of nominal value of the shares of that class
What must be on notice of AGM (6)
Statement that the meeting is an AGM
Date, time and location
Statement of entitlement to appoint proxies
Distinguish between ordinary and special res’
Comply with content requirements of circulars
Date and signature
How far in advance of meeting must notice and accompanying docs be sent?
21 clear days (not including date of notice or meeting
How far in advance of meeting should notice and accompanying docs be sent according to UK CG Code?
20 business days
Who should receive notice of AGM?
Eligible members, auditors, personal reps of deceased shareholders
How far in advance of AGM must notice of proposing to remove director or auditor be sent
28 days in advance