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Describe the functions of the different meetings held by limited companies - Leaving Cert Business - Question 4(A) - 2014
Question 4(A)
Describe the functions of the different meetings held by limited companies. (20 marks)
Worked Solution & Example Answer:Describe the functions of the different meetings held by limited companies - Leaving Cert Business - Question 4(A) - 2014
Step 1
Annual General Meeting (AGM)
Answer
The Annual General Meeting (AGM) is a mandatory annual gathering of the directors and shareholders of a company. Its primary functions include:
- Election of the Board of Directors: Shareholders elect a board of directors responsible for overseeing company operations.
- Appointment of Auditors: Shareholders appoint auditors who will assess the company’s financial health.
- Performance Reporting: The board presents a report detailing the company’s performance over the previous year.
- Presentation of Auditor's Report: The auditor presents their report to share information on financial accuracy and compliance.
- Addressing Shareholder Questions: Shareholders are provided an opportunity to question directors on public company policies.
- Declaration of Dividends: The AGM often allows shareholders to vote on declaring dividends.
Step 2
Extraordinary General Meeting (EGM)
Answer
An Extraordinary General Meeting (EGM) is called to address urgent matters that cannot wait until the next AGM. It primarily focuses on significant issues that need immediate discussion and resolution. Unlike AGMs, there is no set agenda and topics can vary widely.
Step 3
Board Meetings
Answer
Board meetings are convened regularly by the board of directors, usually on a monthly basis. The main functions include:
- Progress Review: Progress is discussed and assessed.
- Strategic Planning: Strategic plans are formulated based on the company's goals and performance.
- Problem Solving: Directors work collaboratively to identify and solve key issues facing the company.
Step 4
Statutory Meeting
Answer
This is the first official meeting of company shareholders, aimed at informing them about the company's affairs. Unique to limited companies, a statutory meeting:
- Must be held only once in the company's lifetime.
- Provides a platform for discussing the formation of the company and outlining business objectives.
Step 5