Question
H& W Ltd is a company limited by shares. Members holding about fifteen percent of the paid-up capital of the company felt that an extraordinary
H& W Ltd is a company limited by shares. Members holding about fifteen percent of the paid-up capital of the company felt that an extraordinary meeting of the company was necessary as there were some crucial matters that the company should decide on.
These members therefore approached the directors of the company and asked them to call the EGM. The directors are not willing to do so, stating that the issues can be dealt with at the AGM, which was scheduled for about nine months' time and that they do not represent a majority of the members so in any case there is not enough of them to make the directors consider calling a meeting.
The members are insistent that the EGM Sold go on now but are clueless as to how it will happen given the stance of the directors.
The members come to you for advice.
- Advise them, in detail, using statute and any other material, as to whether or not the meeting could still be called despite the stance of the directors and the proper detailed procedure that should be adopted accordingly.
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