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Dear Tutor,
I hope you are doing well.
I am currently testing my knowledge for the LW GLO paper ahead of my exam next week and came across the following question related to public companies. The question bank suggests the answer is 31 Dec 2012, however I believe the correct answer is 31 Oct 2012. Please if you could kindly shed some light on how the calculation came about for this question, that would be very helpful.
”What is the latest date that a public company, incorporated on 1 May 2010, could hold its second annual general meeting?”
Thanks in advance.
Kind regards,
AlexandraA PLC must hold an AGM within 18months of its accounting reference date.
For a company incorporated on 1 May 2010 the first accounting reference date is 31 May 2011. 18 months from 31 May 2011 is October.
This must be an error in this mock exam.
Best wishes,
Vijay
HI Alexandra,
Apologies, I have reviewed your question again and the correct answer is indeed 31 December 2012. This is based on the following rules:
The 1st AGM must be held within 6 months of the accounting ref date i.e. 31st October 2011.
The 2nd AGM must be held no later than 15 months after the first AGM i.e. 31 January 2013.
A PLC must hold an AGM every calendar year. If the second AGM is held in January 2013 you miss 2012 which is not permitted. Therefore the PLC would need to hold it no later than December 2012 to ensure the 2nd AGM is held in every calendar year.
I hope that clarifies?
Kind regards,
Vijay
Good evening, thanks so much for the amazing tutoring on open tuition. I have been able to pass my first 3 exams in one trial. However, I have been unable to open the LW global variant mock exams. It keeps saying “oops, something went wrong “. Please could this be rectified as soon as possible. Thanks so much.
Hi Bunmi,
I have checked and it seems to work ok. Please try again. https://opentuition.com/acca/lw/lw-glo-revision-mock-exam/
Best wishes,
Vijay
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