ACCA Applied Skills · Corporate and Business Law (Global) · Company meetings and resolutions
Shareholders of Kestrel Co want to propose an ordinary resolution at a general meeting to remove a director before the end of his term of office. Under the company law rules covered in the LW Global syllabus, what must be given to the company for this resolution?
Special notice must be given to the company of the intention to propose the resolution. Removing a director by ordinary resolution does not need a court order or the director's agreement, but the company must be warned in advance so the director can be informed and respond.
- ASpecial notice, which is notice given to the company of the intention to propose the resolutionCorrect
- BA written undertaking from the director that he will resign if the resolution passes
- CA court order authorising the meeting to consider the removal
Explanation
Removal of a director by ordinary resolution requires special notice to the company of the intention to move the resolution. No court order is needed, and the director's consent or undertaking is not required because the shareholders have the power to remove him.
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