Law Notes Business Associations 1 Notes
A 243 page bible of cases and materials summaries. Includes all extra cases discussed in 2011 (e.g. ASIC v Adler) and super summaries intended for quick reference in an open book exam. Structure of cases and materials summaries is as follows:
Class 1 - Introduction to 'The Corporation' and incorporating under Australian Law
Class 2 - Separate Legal Personality
Class 3 - Implications of Limited Liability
Class 4 - The Corporate Constitution and Decision Making by the Board of Directors
Clas...
The following is a more accessible plain text extract of the PDF sample above, taken from our Business Associations 1 Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
Division 1
S 249A Circulating resolutions of proprietary companies with more than one member
[Scope] The section applies to resolutions of the members of proprietary companies that this Act/it’s constitution requires or permits to be passed at a general meeting – it doesn’t apply to auditor removal (s329)
[Resolution passed without meeting] Company may pass resolution without a GM if all members entitled to vote on the resolution sign a document containing a statement that they are in favour of the resolution in the document. Each member of a joint membership must sign
[Multiple copies] can be used if the wording of the resolution is identical in each copy
The resolution is passed when the last member signs
[requirements] A company that passes a resolution under this section without a meeting satisfies any requirements in this Act to:
Give members information relating to the resolution – by giving them the document to be signed
Lodge with ASIC a copy of a notice of meeting to consider the resolution – by so lodging
Lodge a copy of a document accompanying the notice of meeting to consider the resolution – byso doing
[Satisfaction of constitution] The passage of the resolution satisfies any requirements in this Act or a constitution that the resolution be passed at a GM
This section doesn’t affect any rule of law relating to the assent of members not given at a GM
S 249B – Resolution of 1 Member companies
A company that has only one member may pass a resolution by the member recording it and signing the record
If the Act requires information or a document relating to the resolution be lodged with , then it is satisfied by lodging it once signed
Division 2 – Who may call meeting of members
**S 249C – A director may call a meeting of the company’s members
S 249C – Calling of meetings of members of a listed company by a director
A director may call a meeting of the company’s members
This section only applies to listed companies
It applies despite anything in the company constitution
S 249D Calling of GM by directors when requested by members
The directors of a company must call and arrange to hold a general meeting at the request of
Members with at least 5% of votes that can be cast at a GM
At least 100 members entitled to vote at a GM
(1A) The regulations can provide different numbers for (1)(b) to particular companies/classes
The request must a) be in writing b) state any resolution to be proposed c) be signed by members making it and d) be given to the company
Separate copies of the document setting out the request can be used if identical
Percentage of votes that members have is to worked out as at the midnight before the request
Directors must call the meeting within 21 days after the request
(Notes here come back later)
S 249E – Failure of directors to call a GM
Members with 50%+ votes of all members who make a request under s 249D can call and arrange to hold a GM if the directors don’t do so within 21 days of request
The meeting must be called in the same was as a GM, not later than 3 months after the request
To call a meeting the members requesting it may ask under s 173 for a register of members
The company must pay the reasonable expenses of the members incurred because the directors failed to call the meeting
(4A) Offence based on (3) or (4) is a strict liability offence
The company may recover the amount of expenses from directors but the director isn’t liable if they prove they took all reasonable steps to make other directors comply with s 249D [others are jointly/severally liable]
S 249F – Calling of general meetings by members
Members with at least 5% of the votes that may be cast at a GM can call a GM and must pay expenses for it
The meeting must be called in the same was as a GM of the company may be called
The percentage of votes is calculated as at the midnight before the meeting is called
S 249G – Calling of meetings of members by the court(Notes here come back later)
Court may order a meeting of company’s members to be called if it is impractical to do so any other way
The court can make an order on application of a) any director or b) any member entitled to vote at a meeting
Division 3 – How to call meetings of members
S 249H Amount of notice to meetings
General rule (1) Subject to (2) at least 21 days notice must be given of a meeting of company’s members – the constitution can supply a longer minimum period
Calling on shorter notice
A company can do so for [not for the type of meeting in (3) or (4)
An AGM if all members entitled to vote agree beforehand
Any other GM if members with at least 95% of the votes agree beforehand
Shorter notice not allowed – removing or appointing a director
At least 21 days notice must be given of a meeting of the members of a public company at which a resolution will be moved to a) remove a director under s 203D b) Appoint on in his place
Shorter notice not allowed – removing order
At least 21 days notice must be given of a GM where it is sought to remove an auditor under s 329
S 249HA Amount of notice of meetings of listed company
Despite 249H at least 28 days must be given of a meeting of company members
This section only applies to a company that is listed
It applies despite anything in a constitution
S 249J Notice of meetings of members to members and directors
Notice to members and directors individually (Notes here come back later)
Written notice of a meeting of a company’s members must be given individually to each member entitled to vote at the meeting and to each director (and only once to a joint membership)
**Notice must be given to the joint member named first in the register of members
A company may give notice of a meeting: a) personally b) post c) fax ca) electronic means nominated by the member cb) notifying in accordance with 3A, d) any other means the constitution provides
(3A) ...
Buy the full version of these notes or essay plans and more in our Business Associations 1 Notes.
A 243 page bible of cases and materials summaries. Includes all extra cases discussed in 2011 (e.g. ASIC v Adler) and super summaries intended for quick reference in an open book exam. Structure of cases and materials summaries is as follows:
Class 1 - Introduction to 'The Corporation' and incorporating under Australian Law
Class 2 - Separate Legal Personality
Class 3 - Implications of Limited Liability
Class 4 - The Corporate Constitution and Decision Making by the Board of Directors
Clas...
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