Guys,I thought the information below will interest you all. It's...

Guys,

I thought the information below will interest you all. It's information on how to call an Extraordinary EGA. With so many of you having multiple holdings, this may just work.


Under section 249D of the Corporations Act 2001 (Cwlth) directors of a company must arrange and hold a meeting within 2 months(1) of being requested to do so by:


members with at least 5 per cent of the votes that may be cast at a general meeting(2) (the share capital test), or


at least 100 members(3) who are entitled to vote at a general meeting (the numerical test).(4)

The company bears the cost of calling a requestioned meeting. Directors have the right to refuse to call a meeting if it is not for a proper purpose. For example members cannot, by resolution, make decisions on management matters that are exclusively vested in the directors by the company constitution. A meeting may also be refused if its purpose is to harass the company or its directors or to consider matters outside the competence of the company. In practice however, these grounds provide directors with little scope to avoid calling a meeting.(5)

Concerns
Under section 249D a relatively small number of shareholders can requisition an extraordinary general meeting (EGM) to raise questions of corporate responsibility in relation to a broad range of issues including labour practices, executive remuneration and environmental standards. No other country employs a numerical test for calling company meetings.(6) The Government and business groups have argued that the provision is open to abuse by 'vigilante' groups with political agendas.(7) Large companies can be forced to incur considerable costs in notifying members of an EGM. It is also argued that such meetings distract management from its core responsibilities.