Existing Law Application to class meetings Chapter 4: Public Companies: Additional Requirements for Agms Section 340: Public companies: expenses of circulating members’ resolutions for AGM
587.This section provides that the expenses of complying with section 339 need not be paid by the members who requested the circulation of the resolution if requests sufficient to require the company to circulate it are received before the company’s year-end. Otherwise the company’s expenses will have to be met by the members who requested the circulation of the resolution unless the company resolves otherwise. In this case, the members requesting the statement must deposit a sum to cover the company’s costs (unless the company has resolved otherwise).