HomeFWJ takeawayTakeawayShareholders’ role in administering company affairs

Shareholders have no right to be involved in the day-to-day running of the company unless they (as individuals) are also directors of the company (as often occurs in small owner-managed companies). It is a duty of directors to ensure a register of shareholders must be maintained by the company at all times.

However, this is not to say that shareholders have no involvement in the management of a company’s affairs. Annually the company (acting via its directors) must call a general meeting of shareholders (often referred to as an Annual General Meeting or “AGM”) to consider and pass shareholders resolutions including the approval of financial accounts, the reappointment of directors, approving loans to directors and the appointment of auditors.

Shareholders have no right to be involved in the day-to-day running of the company unless they (as individuals) are also directors of the company (as often occurs in small owner-managed companies). It is a duty of directors to ensure a register of shareholders must be maintained by the company at all times.

However, this is not to say that shareholders have no involvement in the management of a company’s affairs. Annually the company (acting via its directors) must call a general meeting of shareholders (often referred to as an Annual General Meeting or “AGM”) to consider and pass shareholders resolutions including the approval of financial accounts, the reappointment of directors, approving loans to directors and the appointment of auditors.

Any shareholder may call a meeting of shareholders between AGMs (often referred to as Extraordinary General Meetings or “EGMs”) provided s/he (together with any other shareholders requesting such a meeting) has a minimum amount of shares in the company.

An EGM or AGM provides an opportunity for shareholders to amend the company’s Articles of Association, remove directors or impose other conditions on how the company operates.

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