Explanatory Notes

Companies Act 2006

2006 CHAPTER 46

8 November 2006

Existing Law

Proxies

Section 325: Notice of meeting to contain statement of rights

571.This section replaces sections 372(3) and 372(4) of the 1985 Act with changes consequential on the extended rights to appoint proxies under section 324. The new provision requires every notice calling a meeting to contain a statement informing the member of his rights to appoint one or more proxies and any more extensive rights conferred by the company’s articles. Failure to include such a statement will not invalidate the meeting, but is an offence attracting a fine for every officer of the company found in default.