This is a verbatim extract from ASIC webpage Holding the board to account.
One of the key tenets of corporate governance is the ability of shareholders to propose resolutions to be decided at a general meeting. Shareholders with at least 5% of the votes may call a meeting themselves or give notice to the company of a resolution they will propose at a general meeting.
The Corporations Act 2001 requires directors of a company to call and arrange to hold a meeting which is validly requested by shareholders with at least 5% of the votes which may be cast at a meeting. These meetings are often referred to as ‘shareholder requisitioned meetings’.Shareholder requisitioned meetings are one of the few ways shareholders have to effect significant timely change in the management and direction of their company.
Directors of a company which receive a request are obliged to call a meeting within 21 days and to hold the meeting no later than 2 months after the request is given to the company.
Why did the Company not call the meeting and engage with the SAG?
