ABSTRACT
In response to the question who controls a company’s affairs the answer is largely determined by the business laid before and carried out at the respective company meetings. This chapter enables students to understand the relationship between the board of directors and shareholders. For a company meeting to function legally and efficiently several important technicalities need to be satisfied, e.g. there must be a quorum, the chairman’s conduct has to be exemplary and voting rights must be adhered to. Every company must hold an annual general meeting every calendar year, with not more than 15 months between them. The directors may call an extraordinary general meeting and must do so to consider the position when the company’s net assets have fallen to 50 per cent or less of its called up capital. Meetings of a class of shareholder are normally called to consider variations in class rights. Holders of other classes of shares have no right to attend.
