Service of notice - meetings and resolutions, Business Law and Ethics

Service of Notice:

Section 134 (a) provides that, unless the articles of the company make other provision in that behalf, notice of the meeting of a company shall be served on every member of the company in the manner in that notices are utilized to be served by Table A.  Where the company's articles provides, as S.134(a) does, that notice of the meeting shall be served on every member, a failure to give notice to a single member would render the meeting a nullity at common law: Re: West Canadian Collieries Ltd (90) in which Plowman, J. stated: "It is well settled that as regards a general meeting failure to give notice to a single person entitlted to receive notice renders the meeting a nullity".

The primary purpose of the common law rule appears to be to impose on the company's officers who are entrusted with the power of convening its meetings the obligation of acting fairly towards every member of company.  They must invite all the members to the meeting and not just those whom they believe are likely to support private property to be run according to their personal whims.

Although it might at first sight appear unfair to invalidate a meeting at which a majority of the company's members passed relevant resolutions, it should be borne in mind that those who attended the meeting  and voted might not, after all, have voted the way they did if the aggrieved member had been present and drawn their attention to some aspect of the matter which they did not advert to during their deliberations.  Needless to say, a single member can influence the entire general meeting without necessarily having to be a Mark Anthony.  And it is vital for the proper management of the company's affairs that no decision of its members should be adopted as its own, and implemented, unless there is some reasonable assurance that, as it were, 'no stone was left unturned' during the process of arriving at the particular decision.

Posted Date: 1/12/2013 5:31:48 AM | Location : United States







Related Discussions:- Service of notice - meetings and resolutions, Assignment Help, Ask Question on Service of notice - meetings and resolutions, Get Answer, Expert's Help, Service of notice - meetings and resolutions Discussions

Write discussion on Service of notice - meetings and resolutions
Your posts are moderated
Related Questions
Name the Types of  state  immunity The state  immunity  is  categorized  into  two:  A) Absolute  immunity   B) Restrictive immunity.

Determine the implications of the legislature Policy outcomes are the result of legislative bargaining. So policy becomes a compromise between the executive and the legislature

Companys debts: In case a company is unable to pay its debts the creditors, or a creditor, may petition the High Court for an order to wind it up. During the winding up the me

VOIDABLE ALLOTMENTS: An allotment of shares is voidable if it is made in breach of- a)      Section 49 (1): by having been made before the minimum subscription was raised o

Hire-Purchase and Sale The hire-purchase transaction is such not a sale since, according to the definition like: (i)There is no seller or buyer. Such like the parties are the

Compulsory Change: Section 20(2) of the Act provides that within six months of registration with a particular name the registrar may direct a change in name if in his opinion

Question 1: (a) Explain the concept of Salomon Principle and critically analyse its importance in company Law. (b) Discuss why and in what circumstances the court will pierc

Functions of Attorney general Whereas under sec 26(2) the Attorney General is the principal legal adviser for government of US And whereas he occupies a ministeria

Part of the client's contract clearly states that negative publicity will not be tolerated on any actions connected to the temp agency. You know that this situation can harm both c

REGULATIONS REGARDING FIRE : Fire accidents in educational institutions are much less as compared to those in residential, commercial or industrial areas. This is a general observ