The Companies Act 2006 Act abolished the obligation for private companies to hold annual general meetings.
Companies are still be able to hold shareholder meetings if they wish to and meetings can be instituted by the directors at any time.
Companies may still need to hold a meeting in certain circumstances, since for example they will not be able to dismiss a director before his term of office by written resolution.
The vast majority of decision-making in private companies is obviously carried out by the directors. However, the members or shareholders of the company also have a role in taking various decisions – such as the appointment of the directors; amending the articles etc.
Often in small companies, of course, the shareholders and directors will be the same people. The Act therefore makes it easier to use written resolutions for decisions by shareholders
Under the new 2006 Companies Act most decision making by members in private companies will be by written resolution, rather than by calling meetings of shareholders.
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