Week 12 - Corporate Decision-making Through Meetings

Question 1

When does the meeting of directors ‘Board of Directors’ happen?

Answer 1

When required

Question 2

What are meetings of shareholders called?

Answer 2

‘General meetings’ or ‘Class meetings’ (class meeting if they only invite the preference shareholders)

Question 3

Who can call a general meeting?

Answer 3

Directors of their own volition

Question 4

When can directors be required to hold a meeting?

Answer 4

By shareholders representing 5% or more of the company’s voting capital

Question 5

CA S656

Answer 5

Directors have a duty to call a General Meeting to discuss the financial position of the company with the shareholders if there has been a serious loss of capital and the net assets of the company fall below half of the share capital

Question 6

How often must a public company hold an annual general meeting?

Answer 6

Once a year, within six months of the end of their financial year

Question 7

Who is invited to an AGM?

Answer 7

All directors and shareholders

Question 8

How much notice needs to be given and what is the exception to this rule?

Answer 8

Notice of at least 21 days must be given unless all the members agree otherwise

Question 9

How often do private companies have to hold an AGM?

Answer 9

There is no requirement for private companies to hold an AGM