- June 25, 2021 at 6:49 am #626257
Sir my study text states that a director can appoint first auditor or to fill a casual vacancy. They add that “this requires members’ approvals at members meeting”.
So what I wanted to know was can the auditor remain in position and work until the immediate next AGM(say it’s 4months away)? Or that the auditor cannot even work for those 4months, and meeting of members need to be called upon immediately after directors selection and only after their approval will the auditor work till the next meeting(which is the official AGM 4months away) ?June 25, 2021 at 8:24 am #626272
Details will depend on jurisdiction so you don’t need to know them. For example, the Companies Act may specify that the general meeting be called within 3 months of the directors making an appointment. If an AGM is only 4 months away, that would suggest that the year end is imminent (if not already passed!) so the directors would call a general meeting ASAP to make the appointment in order that audited financial statements be presented at the AGM.June 25, 2021 at 12:44 pm #626287
2 doubts based on your answer:
1- in every AGM audited financial statements need to be presented to shareholders?
2- shareholders may not agree to meet twice in such a short span of time i.e. now and in 4months time too, so then what happens?June 25, 2021 at 4:38 pm #626312
1 – short answer “yes”. ANNUAL General Meeting is the compulsory meeting for important business like appointment/reappointment of auditors/directors and declaring the final dividend (if any) for the year (ended) based on the audited financial statements which are formally “laid before the members”.
GMs should be called by the directors as frequently as the circumstances of the business demands – attendance is not compulsory – resolutions will be passed (or not) based on those attending to vote. But again, the specific details of any jurisdiction are not examinable. Under the UK Companies Act – for example – there is a “written resolution regime” available to private companies (only) under which most resolutions can be passed without a physical meeting of members. So your point 2 is not an issue.June 26, 2021 at 2:13 am #626340
Sir are you trying to suggest that AGMs and GMs are two different forms of meetings? And that GMs can be called for frequently as compared to AGMs which is allowed once per year only.June 26, 2021 at 9:08 am #626362
“general meeting” means a meeting of the shareholders. The AGM refers to the meeting that must be convened annually to pass resolutions on the types of things I have mentioned. Additional GMs USED to be called “extraordinary” GMs (in UK law) – but there’s nothing extraordinary about them – they are just any GM that is not the AGM.
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