UK Company Law Shareholders and Directors Essay

UK Company Law Shareholders and Directors - Essay ExampleIf S has began to take less supple part in the management of the beau monde, she can be paid less than the agreed amount.However, this should be done according to the laid down procedure. In her pass state, she is entitled to be paid the agreed amount of money that is 30,000 Pounds. Paying her 10,000 is unjustified because in order to effect this, the directors must pass a peculiar(prenominal) resolution requiring that -(1) In absence of any express words in the articles requiring that a director who takes a less active role in the company shall be entitled a salary three times less of his / her monthly, she is entitled for the whole dedicate of 30,000 pounds.(2) In absence of any special resolution, which is passed at a general meeting o a company by a majority of 75% of members present and entitled to vote, the directive of the directors to the payroll module to pay S 10,000 pounds is unjustified.In this case S can chal lenge the decision of the directors in a court of law if they adamantly refuse to pay her 30,000 pounds, which she is entitled to be paid till the meeting is convened, and resolution passed to this effect.First of all, the proposal has to be approved by the directions who make-up the board. The board shall decide the appointee and time of the general meeting and secretary will be authorized to convene the meeting. The directors will also approve the draft of notice, special resolution and explanatory statement.Secondly, the special resolution should be passed in the general meeting held on the appointed date.Thirdly, within thirty days of the passing of the resolution the company has to appoint a certified copy of the resolution. After the approval, the company should file printed copies of the articles with the registrar of companies within one month of the date of the receipt of approval.The company Act provides that, fount to the provisions of the Act and to the conditions con tained in this