Other
Company decision making essay plan
- Module
- Company Law
- Institution
- Edge Hill University (EHU)
Company decision making essay plan
[Show more]
Seller
Follow
Content preview
Company decision making – DetailedEssay plan
Introduction
Company’s power distributed between shareholders and directors
o Subject to provisions of the companies act 2006.
o Some key decisions can only be made by shareholders
o Some decisions can be made by directors with shareholder agreement
Decisions by Directors
Taken at board meetings or by written resolution
o At board meeting – board resolution
o Written resolution – written resolution – require unanimity
Examples
o Appoint Chairman of the Board – MA12
o Appoint Managing Director – MA5
o Appoint Sales Director – MA5
o Buy or Sell Company assets – not to a director
o Transfer subscriber shares – MA26, s771
o Register transfer of shares –
Decisions by Shareholders
Taken at General meeting or by written resolution
o Special resolutions
, o Written resolutions only require same majority as required in a general
meeting
Special – 75%
Examples
o Alter company Articles – s21(1)
o Alter share capital – s617 & 641
o Delegate authority to allot shares – ss550 & 551
o Change company name –s77(1)
Directors decision requiring shareholder approval
Contained in Part 10 Chapter 4 of Companies Act 2006
Examples
o Fixed term service contracts over 2 years – s188(2)
o Substantial Property Transfers between directors and the company –
s190
o Loans, quasi-loads and credit transactions – ss197-214
o Payment for loss of office – Gratuitous compensation – s215 – 222
Directors with a personal interest
If a director has a personal interest in a transaction or arrangement, they must
make a declaration of their interest.
S177 – duty to declare interest in a proposed transaction/arrangement
S182 –declaration to declare an interest in an existing
transaction/arrangement
The declaration must be;
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller rebeccaclark. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £3.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
60904 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now