Full disclosure in meeting notices: inadequate explanatory statements do not meet good company practice and impair shareholder decision-making. Managements have sometimes omitted material facts in explanatory statements for resolutions (notably appointments of sole selling agents and their remuneration) or relied solely on inspection of documents at the registered office. The Department views that sending notices without sufficiently full disclosure does not conform to good company practice, and inspection rights cannot substitute for adequate explanatory disclosure, particularly for distant shareholders.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Full disclosure in meeting notices: inadequate explanatory statements do not meet good company practice and impair shareholder decision-making.
Managements have sometimes omitted material facts in explanatory statements for resolutions (notably appointments of sole selling agents and their remuneration) or relied solely on inspection of documents at the registered office. The Department views that sending notices without sufficiently full disclosure does not conform to good company practice, and inspection rights cannot substitute for adequate explanatory disclosure, particularly for distant shareholders.
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