Categories
COSEC

Is the commission permitted to assess the costs of convening a shareholders meeting to every director of a company which has failed to appoint a company secretary as required by companies act 2008?

Chapter 3 – Question 36

Written by Dr. Adv. Leigh Hefer & Jayne Hunter-Rhys. COMPANY SECRETARY’S HANDBOOK (2021). Published by Genesis Corporate Services.

  1. Yes. If the company fails to respond to a Notice to show cause why the Commission should not proceed to convene a shareholders meeting for the purpose of appointing a company secretary or, in responding fails to satisfy the Commission that the board will make the appointment or convene a shareholders meeting to make the appointment within an acceptable period, the Commission may give Notice to the holders of the company’s securities of a general meeting and convene such a meeting to make the appointment of company secretary for the company.
  2. The Commission may then assess a pro rata share of the cost of convening the general meeting to each director of the company who knowingly permitted the company to fail to make the appointment in accordance with Part A of Chapter 3 of the Act.
    Source: Section 84(6)(b)(i)(ii) of Companies Act 71 of 2008 as amended by section 53(d) of Act 3 of 2011

Hard copy and E-Book Publications for the Professionals, Company Secretaries, Company Directors and Prescribed Officers, Members of CCs, Business Owners, Lecturers and Students on various business, compliance and legislative topics.