Business Law in Practice by Paul Raby

By Paul Raby

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By Paul Raby

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And any situations in which the director’s have declared an interest. The annual return The annual return must be completed by the directors and submitted within 28 days of the anniversary of the company’s incorporation. The annual return is aimed at keeping the information at Companies House up to date and once registered the information is available to anyone wishing to search. The annual return must contain: elective resolutions Used to dispense with certain formalities, such as duty to hold an AGM, duty to lay the annual accounts before the AGM and duty to elect auditors at the AGM.

The practical effect was therefore to prevent the removal of Mr Faith from office. Compensation and damages When a director ceases to hold office, he may wish to be paid some sort of compensation or damages. 312, CA 1985 it is unlawful for a company to make any payment to a director in compensation for loss of office unless the particaulrs of the proposed payment are disclosed to members and approved by the company. 303, this cannot deprive him of his entitlement to damages in respect of the termination of his appointment as director.

The brother, Mr Faith, also owned 100 shares. All three were directors of the company. The company’s Articles provided that in the event of a resolution being proposed at any general meeting of the company for the removal from office of any director, any shares held by that director should carry the right to three votes. Problems arose between the brother and sisters and the sisters sought to remove the brother from office. When a vote was taken on a poll at the general meeting, the brother exercised the weighted voting rights attached to his shares and defeated the sisters’ resolution by 300 votes to 200.

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