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Questions and Answers
What is a share, in the context of a company?
What is a share, in the context of a company?
A unit into which the proprietary interest of a company is divided.
Who is considered a shareholder, according to Section 1?
Who is considered a shareholder, according to Section 1?
A holder of a share issued by the company, entered into the register as such in the certified or uncertified register of the company.
What is the maximum time period allowed between the date of incorporation and the first Annual General Meeting (AGM)?
What is the maximum time period allowed between the date of incorporation and the first Annual General Meeting (AGM)?
18 months
What is the purpose of the record date in relation to shareholders and the Act?
What is the purpose of the record date in relation to shareholders and the Act?
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What is the default legislative position regarding the quorum for a meeting?
What is the default legislative position regarding the quorum for a meeting?
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What is a proxy, in the context of a company meeting?
What is a proxy, in the context of a company meeting?
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Study Notes
Company Shares and Shareholders
- A share is a unit into which the proprietary interest of a company is divided.
- A shareholder is a holder of a share issued by the company, entered into the register, and is entitled to vote regardless of the form, title, or nature of the securities.
Annual General Meeting (AGM)
- The first AGM must take place no more than 18 months after the date of incorporation.
- Subsequent AGMs must take place within 15 months of the last AGM.
- The Companies Tribunal can grant an extension on good cause.
- The AGM deals with:
- Director's report
- Audited financial statements
- Audit committee report
- Election of directors
- Appointment of auditor and audit committee
- Any matters raised with or without notice to the company
Record Date
- The record date is the date on which the company determines shareholders' identity and shareholdings for the purpose of the Act, and determines shareholders' rights.
Quorum
- Quorum is the minimum number of persons required to be present before the meeting can commence.
- The default legislative position is 25%.
Proxy
- A proxy is a person appointed to represent a shareholder at a meeting.
Casting Vote
- A person's voting power is determined by the voting rights that may be exercised in connection with a matter as a percentage of all voting rights.
- Voting rights are the rights of any holder of securities to vote in connection with a matter.
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Description
Quiz about shares, shareholders, and Annual General Meetings (AGMs) in a company, covering definitions and key concepts.
