FLK1 · Multiple-choice practice
FLK1 Business Law — Question 3
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Myriam is a shareholder of a public limited company and holds 2% of the shares in the company. Myriam is an environmental activist and seeks to influence sustainability measures in all her public and personal engagements. She is deeply dissatisfied with the company’s environmental policies and wants to bring this to the attention of the board, as she thinks that the company could easily do a lot more to contribute to the fight against climate change. Which of the following options is available to the shareholder?
Answer and explanation
Correct answer: B. Myriam can raise the issue at an annual general meeting.
A shareholder has the right to ask questions at a general meeting, including the annual general meeting, on any matter relating to the company’s business (see Chapter 3, Companies Act 2006). However, the shareholder cannot demand that the company takes specific action to address the environmental policy as they hold only a small percentage of the company’s shares. On the facts presented, it seems that there isn’t much for Myriam to bring action against the company (a derivative action). s.527 does not appear relevant to Myriam’s concerns. Answer B therefore is the most likely answer.
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