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CFA Level I · CFA Level I Exam · Equity Jurisdictions, Classes, and the Voting Process

Which of the following matters is most likely to be put to shareholders at an extraordinary general meeting rather than routinely at an annual general meeting?

Approval of a significant merger is most likely handled at an extraordinary general meeting. Such meetings address special matters that cannot wait for the next annual meeting, whereas auditor appointment and receipt of financial statements are routine annual general meeting business.

  1. AApproval of a merger that significantly changes the companyCorrect
  2. BAppointment of the external auditor
  3. CReceipt of the annual financial statements

Explanation

Annual meetings handle routine matters such as auditor appointment, accounts and director elections. Extraordinary meetings are called for special, urgent matters such as a merger or major change that cannot wait until the next annual meeting.

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