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

Dalton Co's articles say a proxy appointment must be deposited with the company at least 48 hours before the meeting. Priya, a member, hands a valid proxy form to Tom, her proxy, who delivers it to the company 24 hours before the meeting. Under the usual rules in the LW Global syllabus, what is the position?

The proxy can be rejected as late. A company may require deposit of the proxy appointment a set time before the meeting, within legal limits, and 24 hours falls short of the 48 hours required by the articles. No further penalty applies to Priya.

  1. AThe company may reject the proxy as late if the articles set the 48-hour deadline within the permitted limitCorrect
  2. BThe proxy is valid because any deposit before the meeting is enough
  3. CThe proxy is valid only if Priya also attends the meeting
  4. DThe proxy is void and Priya is barred from voting for twelve months

Explanation

Companies may set a deadline for depositing proxy appointments, within the limits the law permits, and a late deposit may be rejected. The 48-hour requirement here is a normal deadline. The suggestion that any deposit is enough ignores the articles, and no twelve-month bar applies.

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