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At the first AGM of a public company, all the directors have to resign. But why?
Source: f4 BPP study text global 2015 page 229
Basically, it is to ensure that the shareholders retain confidence in directors.They must therefore be elected as individuals to the board.As a result of public holding of shares it is likely different shareholders exist to those who previously appointed directors.
I thought one of the reasons was because, until the first AGM, the directors had been appointed by the promoter so the first AGM is the first opportunity for the shareholders to select their board of directors
Thanks for the answer. 🙂
@biggles said:
I thought one of the reasons was because, until the first AGM, the directors had been appointed by the promoter so the first AGM is the first opportunity for the shareholders to select their board of directorsThanks for the answer 🙂
@biggles said:
I thought one of the reasons was because, until the first AGM, the directors had been appointed by the promoter so the first AGM is the first opportunity for the shareholders to select their board of directors
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