Members requiring directors to call a general meeting: timing (CA 2006 ss.303-304)

Section 303(1) CA 2006 allows members to require the directors to call a general meeting. The directors must do so once the company receives requests from members representing at least 5% of the paid-up capital carrying the right to vote at general meetings (s.303(2)). Yusuf holds 7%, and his request states the general nature of the business and includes a resolution that may properly be moved (s.303(4)), so the directors are bound to act. Section 304(1) then sets the timetable: the directors must call the meeting within 21 days from the date on which they become subject to the requirement, and the meeting must be held on a date not more than 28 days after the date of the notice convening it. Because the request includes a resolution, the notice of the meeting must include notice of that resolution (s.304(2)).

Why A is wrong: The periods are reversed: the meeting must be called within 21 days and held not more than 28 days after the notice.

Why C is wrong: The threshold in s.303(2) is 5% of the paid-up voting capital, which Yusuf's 7% exceeds.

Why D is wrong: Section 303 requires a general meeting to be called; members who want a written resolution must use the separate s.292 procedure.

Why E is wrong: Private companies are not generally required to hold AGMs, and s.304 fixes a specific timetable for the requisitioned meeting.