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ACCA Applied Skills · Corporate and Business Law (Global) · Company meetings and resolutions

Corvus Co's directors wish to propose a special resolution at a general meeting. Which statement about the content of the notice is correct?

The notice must state the time, date and place of the meeting and the general nature of the business. For a special resolution it must also specify that the resolution is to be proposed as a special resolution, so members are fairly informed before the meeting.

  1. AThe notice need only give the date of the meeting, not its place
  2. BThe notice must give the time, date and place and state the general nature of the business, and for a special resolution must set out the intention to propose it as suchCorrect
  3. CThe notice need not mention the resolution if it will be provided at the meeting

Explanation

A valid notice states the time, date and place and the general nature of the business. A special resolution requires the notice to specify the intention to propose it as a special resolution, so members know what majority applies. Withholding the resolution until the meeting would deprive members of fair warning.

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