ACCA Applied Skills · Corporate and Business Law (Global) · Company meetings and resolutions
Zephyr Ltd, a private company, has 20 shareholders. The directors wish to hold a general meeting to pass an ordinary resolution. Under the usual company law rules applying in the Global variant, which statement about the notice to shareholders is correct?
Notice of a general meeting must state the time, date and place and the general nature of the business, and must be sent to all members entitled to attend. Selective, oral-only or place-unspecified notice fails the requirements.
- ANotice must state the time, date and place of the meeting and the general nature of the business to be dealt withCorrect
- BNotice need only be given to shareholders holding more than 5% of the shares
- CNotice need not state the place of the meeting if the directors will decide it on the day
- DNotice may be given orally by the company secretary without any written record
Explanation
A valid notice must tell members when and where the meeting will be held and the general nature of the business. Notice must go to all members entitled to attend, not just large holders, so the 5% option is wrong. Leaving the place undecided or giving only oral notice does not satisfy the requirements.
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