AGO shareholders can hold company directors to account and have the power to remove directors if they are considered to have acted inappropriately – (i.e. not in the best interests of the shareholders). To gauge shareholder interest in pursuing this action, please “Like” this post, which we can then compare with the NO vote register to determine the popular mood of holders.
Below is a cut down version of an earlier post.
From section 203D of the Corporations Act:
Directors properly performing their duties and acting in the company’s interests are essential requirements for effective corporate governance. In some circumstances, a director not acting appropriately may be disqualified and, removed by shareholders. Directors can be removed under section 203D of the Corporations Act by an ordinary resolution of shareholders, by the following steps:
Shareholders must give the company at least 2 months notice before the meeting of their intention to move the resolution to remove the director.
The director must be given notice of the resolution as soon as practicable.
The director must be given the opportunity to address the resolution at the meeting and they may issue a statement before the meeting to be circulated to the members.
The company must issue notice of the meeting to members. This must be a minimum of 21 days before the meeting for a public company and 28 days for a listed company
Who calls the meeting?
Directors cannot simply refuse to call a meeting to pass a removal resolution. If shareholders holding at least 5% of the votes in the company request a meeting to consider a removal resolution, then the directors are obligated to call and arrange to hold it at the company’s expense. Alternatively, shareholders holding at least 5% of the votes in the company may call and arrange to hold a meeting at their own expense without making a request to the directors.
AGO Price at posting:
3.0¢ Sentiment: Hold Disclosure: Held
