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Hello Mike, thanks for the lectures.
From the lecture, OB is limited to below
– Reappointment of directors
– Reappointment of auditors
– Approval / Declare of dividends
– Formal presentation of Financial statementand all the others are SB.
I encountered a question in BPP 22.5 Task 1 which I think it’s not within those four OB explained above.
Q. Which TWO of the following are examples of the ordinary business dealt with at an annual general meeting?
– Appointment of the company secretary
– Fixing the auditor’s remuneration
– Paying shareholders their dividends
– Considering the directors’ report
A.
– Fixing the auditor’s remuneration
– Considering the directors’ reportI understood the other two are NOT OB but I’m not sure why the two (answers) are OB. Can you please help me understand? Thank you!
Appointment of company secretary – this is clearly not one of the 4 matters.
Reappointment of auditors should, technically have read ‘reappointment of the auditors and authorise the directors to fix the auditors’ remuneration’
The directors will propose / suggest the dividend to be approved and the members will (hopefully!) approve. But the actual PAYMENT of the dividend has nothing to do with the AGM.
Formal presentation of the financial statements includes the consideration of the directors’ report.
OK now?
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