Final Ch. 24

Question 1

Annual general meeting

Answer 1

• allow shareholders to question the directors about the annual report and to vote on any resolutions

Question 2

general meeting

Answer 2

something occurs that cannot wait until AGM

Question 3

general meeting if…(3)

Answer 3

1. Serious reduction of capital
2. members requisition a meeting
3. order of the court
4. requisition by retiring auditors

Question 4

quorum

Answer 4

minimum number of members required to be present before a meeting can take place/continue

Question 5

resolutions

Answer 5

a firms decision to do or not do something

Question 6

resolutions kinds (3)

Answer 6

1. ordinary resolution
2. special resolution
3. extraordinary resolution

Question 7

ordinary resolution

Answer 7

requires majority

Question 8

special resolution

Answer 8

75% majority of members present and voting

Question 9

extraordinary resolution

Answer 9

75% majority, states that its liabilities prevent it continuing in business

Question 10

special notice

Answer 10

given to company not members

Question 11

resolutions requiring special notice (2)

Answer 11

1. removal of an auditor

2. remove a director

Question 12

proxies

Answer 12

a person voting on behalf of a member at a general meeting

Question 13

derivative action

Answer 13

claim by minority shareholders to protect the company’s interests

Question 14

unfair prejudice

Answer 14

running the company in any way which unfairly affects the interests of a minority of shareholders