Circulars to Members and Members’ Statements
Very often when a meeting of members of a company is convened the notice of the meeting will be accompanied by a circular that is addressed to all of the members. Such a circular for distribution to members will be prepared by the board of directors, usually in consultation with relevant appropriate professional advisers. The purpose of sending a circular to members is to appraise them of the reason for, and purpose of, the resolutions that are proposed to be considered at the forth-coming general meeting, and to provide pertinent information to shareholders in order to enable them to take an informed decision as to whether or not to attend the meeting and as to how they will cast their votes. A board of directors must ensure that a circular to members contains an accurate summary of all of the relevant information relating to the proposals upon which the members have been asked to vote at the forthcoming general meeting. In the context of a public listed company, it is to be noted that the Listing Rules of the Financial Conduct Authority require that when the holders of listed equity shares are sent a notice of meeting which includes any