BL – Nov 2014 – L1 – SB – Q2b – Company Law

Explain a type of resolution, state the quorum, and list ordinary business items at an AGM.

Question

Decisions at company meetings are taken by resolutions.

You are required to:
i. Explain briefly ONE type of such resolutions.
(4 Marks)

ii. State the quorum at a company meeting and who may convene an Extra-Ordinary General Meeting.
(2 Marks)

iii. List THREE issues that are considered ordinary businesses at the Annual General Meeting (AGM).
(3 Marks)

Answer

i. Ordinary Resolution: An ordinary resolution is passed by a simple majority of members present and voting at a company meeting. It is used for routine business decisions such as approving accounts, declaring dividends, or appointing directors. The resolution is effective if more than 50% of the votes cast are in favor.

ii. Quorum at a company meeting: The quorum at a company meeting is typically two members present in person or by proxy.
Who may convene an Extra-Ordinary General Meeting (EGM): An EGM can be convened by the directors of the company, or in certain cases, by members who hold at least 10% of the company’s voting shares.

iii. Ordinary business at the AGM:

Approval of the company’s financial statements
Declaration of dividends
Appointment and re-election of directors

Tags: AGM, Company Meetings, EGM, Quorum, Resolutions
Level: Level 1

Topic: Company Law
Series: NOV 2014

Uploader: Dotse