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Good day sir
The following are either characteristics of a co-operative or of a public limited company:
(1) Maximising the excess of income over expenditure not a primary objective
(2) Members can vote according to the number of shares owned
(3) Shares can be bought and sold through personal transactions of the members
(4) All members are invited to attend the annual general meeting and participate in decisions at
the meetingWhich of the above are the characteristics of public limited companies?
The answer is 2 and 3 only
I chose 2, 3 and 4.
I understand that co-operatives are one member one vote and public companies are one share one vote but don’t they both have annual general meetings where they vote on things like whether to keep members of the board of directors?
Companies are required to have annual general meetings, is it optional for co-operatives?
Did I interpret “participate in decisions at the meeting” wrong? I just want to understand why option 4 is wrong.Thank you in advance!
I agree with you.
I think what the model answer was trying to say is that members of a PLC do not have power to make day-to-day decisions, whereas cooperative members do. However, at the AGM the members vote on matters like the appointment of auditors, directors’ remuneration etc and that is definitely participating in decision-making at the meeting.
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