3.1.2. Board Meetings

There are two basic forms of company meetings:

1. Board meetings

2. Shareholders’ meetings

Board meetings are attended by the directors of the company. Day to day business decisions are usually taken at board meetings. Matters to be decided upon are put to the meeting in the form of ‘resolutions’, each director present casting a vote for or against each resolution being considered. (Voting is usually by a ‘show of hands’.) Whether or not a resolution is passed depends on whether the majority of votes are in favour of or against that resolution. In other words the decision is made by a simple majority. Multi-national companies with directors located inter­nationally often stipulate in their articles that board meetings may be validly held by means of telephone or audio-visual conferencing as well as via the internet.

Any director can call a board meeting on reasonable notice to all the other direc­tors. Board meetings are therefore often convened at short notice. A written record is made of matters discussed and of resolutions considered at a board meeting. This record is known as the ‘minutes’ of the meeting.

Assignments

I. Memorize the following words and phrases from the text:

to cast vote	проголосувати, подавати голос (на виборах)
voting by a show of hands	голосування підняттям рук
to pass a resolution	ухвалювати рішення (резолюцію)
notice	оголошення, повідомлення
at short notice	негайно
to convene a meeting	скликати збори
board meeting	засідання правління
shareholders meeting	збори акціонерів

II. Study the use of italicized words in different phrases. Use them in sentences:

~ Vote ~
open ~ ;	відкрите голосування
roll-call ~ ;	поіменне голосування
secret ~ ;	таємне голосування
~ by proxy	голосування за дорученням
to put to the ~ ;	ставити на голосування
to count the ~ s ;	підраховувати голоси
~ to vote ~
~ for	голосувати за
~ against	голосувати проти
~ meeting ~
panel ~ ;	нарада експертів
to adjourn a ~ ;	відкладати збори
to declare a ~ adjourned	оголошувати про перенесення зборів
to declare a ~ closed to declare a ~ opened	закривати збори відкривати збори
to hold a ~ ;	проводити збори
to open a ~	відкривати збори
to postpone a ~ ;	відстрочувати збори
to resume a ~ ;	поновлювати засідання
to take part in a ~ ;	брати участь у зборах

III. A company named Golden Tours Limited (“Golden Tours”) is planning to hold its first board meeting. It has two directors, namely John Richardson and Tony Randell. Acting as a Golden Tours’ lawyer you are asked to prepare the minutes for the first board meeting of the company taking account of the following specific instructions.

Client Instructions

• Another director is to be appointed, namely Mr. David Kent of 4 Kensington Palace Gardens, London, W2 4AJ

• The name of the company is to be changed from Golden Tours Limited to Premium Tours.

Task

Complete the minutes of the company’s first board meeting by selecting the most appropriate word from the list below to place in each correspondingly numbered space in the draft minutes given below:

1. (a) restitution (b) resolution (c) resolved (d) determined	5. (a) collated (b) convened (c) assembled (d) accumulated
2. (a) employed (b) appointed (c) selected (d) commissioned	6. (a) given (b) provided (c) catered (d) supplied
3. (a) classified (b) head (c) official (d) registered	7. (a) intentions (b) proposals (c) resolve (d) resolutions
4. (a) disclosed (b) indicated (c ) presented (d) represented	8. (a) declared (b) proclaimed (c) affirmed (d)publicised

Now name yourself as the company’s solicitor by entering your own name in box “A” of paragraph 2 of the minutes of the board meeting.

GOLDEN TOURS

Minutes of the first meeting of the board of directors of Golden Tours Limited (‘the company’) held at 44 Princess Diana Walk, South Kensington, London, W2 3SL. 15 May 20… at 10.00 a. m.

Present: John Richardson

Tony Randell

In Attendance: Susan Greenfield

1. John Richardson and Tony Randell accepted office as directors of the company. It was resolved that John Richardson be appointed Chairman of the board.

2. It was [1]_________________ that [A]___________be appointed solicitor to the company.

3. It was resolved that Susan Greenfield be [2]_________________ secretary of the company.

4. It was resolved that the [3]_________________office be at 44 Princess Diana Walk, South Kensington, London, W2 3 SL.

5. It was resolved that the quorum necessary for the transaction of the business of the directors should be two directors personally present.

6. A draft notice of an extraordinary general meeting of the company was [4]_____________ to the meeting and approved. It was further resolved that such meeting be [5]_____________and that notice of this be [6]____________ forthwith to the shareholders.

7. The meeting thereupon adjourned. Upon resumption it was reported that the [7]____________ set out in the notice of the extraordinary general meeting had been passed respectively as ordinary and special resolutions of the company.

8. Upon there being no further competent business the meeting was then [8]_____ closed by the Chairman.

Chairman

IV. Answer the following questions relating to the above text on board meetings and on the minutes you have just finalised.

1. What is meant by convening a meeting?

2. What is meant by a simple majority?

3. What is meant by a vote being taken on a show of hands?

4. Why do you think multi-national companies sometimes conduct board meetings by audiovisual conferencing?

5. Suggest one reason why a director may wish to call board meeting.

6. What is a quorum?

V. Translate into English:

1. На зборах правління мають бути присутніми директори компанії.

2. На зборах правління приймаються головні рішення стосовно компанії.

3. Кожен директор має один голос.

4. Тільки директори компанії можуть голосувати на зборах правління.

5. Резолюції ухвалюються простою більшістю.

6. Кворум - це мінімальна кількість людей, які мають бути присутніми на зборах, щоб прийняті рішення вважались правочинними.