Skip to content

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

Kestrel Ltd is a private company in a jurisdiction following the general principles taught in the ACCA LW (Global) syllabus. It has passed no resolution to dispense with annual general meetings, and its articles are silent on the matter. A shareholder asks whether the company must hold an annual general meeting each year. Which statement is correct?

A private company is generally not required to hold an annual general meeting unless the law or its own constitution demands one. It can deal with annual business through written resolutions. The obligation to hold an AGM each year is aimed at public companies.

  1. AA private company need not hold an annual general meeting unless the law or its constitution requires one, and may pass its business by written resolutionCorrect
  2. BEvery company, whether public or private, must hold an annual general meeting each year without exception
  3. CA private company must hold an annual general meeting only if it has more than ten shareholders

Explanation

Under the general company law principles in the syllabus, annual general meetings are a requirement for public companies, while private companies are usually not obliged to hold them and can use written resolutions for routine business. The ten-shareholder test has no basis, and saying every company must hold one ignores the private company relaxation.

Did you get it right without looking?

One question tells you little. A timed set on Company meetings and resolutions shows your real accuracy, how long you take and where you lose marks.

Practise Company meetings and resolutionsFree diagnostic mock

More Company meetings and resolutions questions