Question
Elmo Ltd (Elmo) is a public company, relying on the replaceable rules of the Corporations Act. Elmo's board of directors is currently dysfunctional as there
Elmo Ltd (Elmo) is a public company, relying on the replaceable rules of the Corporations Act. Elmo's board of directors is currently dysfunctional as there are four directors on the Board, but one director is very ill and another rarely attends board meetings. The poor attendance at Board meetings is causing delays in finalising and implementing important decisions. The two active board members, Berta and Erni, would like an additional director appointed to Elmo's Board as soon as possible, to ensure there will be at least 3 of the 5 directors actively participating in Elmo's management. Elmo's next annual general meeting is another 8 months away. How can a new director be quickly but properly appointed to Elmo's board? a. Berta and Erni can immediately appoint a new director under s 201H, but this will need confirmation by members within two months. b. Berta and Erni can immediately appoint a new director under s 201H, but this will need confirmation by members at the Elmo's next annual general meeting. c. As directors, Berta and Erni can appoint a new director, under s 201H, without any need to involve members in this change. d. As directors. Berta and Erni can immediately appoint a new director under s 201G.
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