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

The directors of Altus Co, a private company, wish to call a general meeting to pass an ordinary resolution. Under the general company law principles examined in LW (Global), who normally has the primary power to call a general meeting of the company?

The directors normally have the power to call a general meeting. They manage the company and decide by board decision when members should be convened. Auditors and creditors have no general power to call meetings, though members holding enough shares can require the directors to do so.

  1. AThe directorsCorrect
  2. BThe company's external auditor
  3. CThe company's largest creditor

Explanation

The directors are the body with the general power to call general meetings, usually by board decision. The auditor and creditors have no such power. Members may in some cases require directors to call a meeting, but that is a separate right.

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