Question

What is the requirement that a company hold meetings? Which of the following is correct? (1 mark)

Select one:

a. Public companies and large proprietary companies are required to hold annual general meetings each year.

b. No company needs to hold any meeting, unless of course ASIC determines that the company must hold a meeting for some emergency purposes.

c. A company needs only to hold a meeting where a special resolution is to be put to the members.

d. Only public companies must hold an annual general meeting, however all other companies may need to hold a meeting if passing a special resolution or where the members demand that meeting.

Answer 1

Assumption: Answer is given by taking View of Australian Securities & Investments Commission(ASIC) and Corporations Act 2001. As reference of ASIC mentioned in the Question.

Answer:

Correct Answer - D. Only Public Companies must hold an annual general meeting, however all other companies may need to hold meetings if passing a special resolution or where the members demand that meeting.

Explanation of Answer:

As per requirement of Australian Securities Investments Commission (ASIC) and Corporations Act 2001 Only PUBLIC COMPANIES are required to call for Annual General Meeting every year.

All other companies including Large Proprietary Companies are not required to call for Annual General Meeting unless demanded by its shareholders and to pass Special Resolution where Resolution is passed by 75% or more of voting by Shareholders.

Thus, from Explanation it can be Concluded that Option D is Correct.

Explain Terms.

1. Public Company - The Company which can raise capital from General Public.

2. Proprietary Company - The Company which can be formed by capital of Private investors that Private Investment and not allowed to raise capital from General Public.