THE CORPORATIONS LAW

CHAPTER 2G - MEETINGS

PART 2G.2 - MEETINGS OF MEMBERS OF COMPANIES

Division 2 - Who may call meetings of members

SECTION 249E   FAILURE OF DIRECTORS TO CALL GENERAL MEETING  

249E(1)  [Members may call meeting]  

Members with more than 50% of the votes of all of the members who make a request under section 249D may call and arrange to hold a general meeting if the directors do not do so within 21 days after the request is given to the company.

249E(2)  [Procedure for calling meeting]  

The meeting must be called in the same way - so far as is possible - in which general meetings of the company may be called. The meeting must be held not later than 3 months after the request is given to the company.

249E(3)  [Register of members]  

To call the meeting the members requesting the meeting may ask the company under section 173 for a copy of the register of members. Despite paragraph 173(3)(b), the company must give the members the copy of the register without charge.

249E(4)  [Reasonable expenses]  

The company must pay the reasonable expenses the members incurred because the directors failed to call and arrange to hold the meeting.

249E(5)  [Directors' liability for expenses]  

The company may recover the amount of the expenses from the directors. However, a director is not liable for the amount if they prove that they took all reasonable steps to cause the directors to comply with section 249D. The directors who are liable are jointly and individually liable for the amount. If a director who is liable for the amount does not reimburse the company, the company must deduct the amount from any sum payable as fees to, or remuneration of, the director.