Skip to content

CMA Final · Corporate and Economic Laws · Board Meetings and Procedures

Section 173 requires that a Board meeting be called by not less than seven days' notice in writing. Which statement correctly describes the permitted way of sending that notice and the shorter-notice rule?

Notice must be in writing, at least seven days, sent by hand delivery, post or electronic means. A meeting can be called at shorter notice for urgent business provided at least one independent director, if any, attends. Requiring all independent directors or oral notice is not what the Act says.

  1. ANotice may be sent by hand delivery, post or electronic means, and a shorter-notice meeting to transact urgent business needs at least one independent director, if any, to be presentCorrect
  2. BNotice must be sent only by registered post, and shorter notice is never allowed
  3. CNotice may be sent by hand, post or electronic means, and shorter notice needs the presence of all independent directors
  4. DNotice may be given orally if the business is urgent, with no independent director needed

Explanation

Section 173(3) requires written notice of seven days, sent by hand delivery, post or electronic means. Shorter notice is allowed for urgent business if at least one independent director, if any, is present. Requiring all independent directors is wrong; one is enough.

Did you get it right without looking?

One question tells you little. A timed set on Board Meetings and Procedures shows your real accuracy, how long you take and where you lose marks.

Practise Board Meetings and ProceduresFree diagnostic mock

More Board Meetings and Procedures questions