Document ID: chunk:federal_register_of_legislation:C2025C00185:section:201p
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 201P
Character Range: 624583–626348

201P  Directors must not set board limit unless proposed limit has been approved by general meeting
 (1) The directors must not set a board limit unless:
 (a) a resolution (a board limit resolution) approving the proposal to set the limit specified in the resolution has been passed by a general meeting of the company; and
 (b) the notice of the meeting set out an intention to propose the board limit resolution and stated the resolution; and
 (c) the notice was accompanied by a statement explaining the resolution and meeting the requirements in section 201Q.
Note 1: Subsection 249L(3) requires information in the notice of meeting to be presented clearly, concisely and effectively.
Note 2: Section 201U specifies the consequences of a contravention of subsection (1) of this section. Also, section 1324 provides for injunctions to enforce subsection (1) of this section.
 (2) A board limit resolution has effect until immediately before the start of the first AGM of the company after the general meeting by which the resolution was passed.
 (3) A board limit resolution does not prevent the appointment of a person as a director of the company by the other directors of the company between general meetings of the company.
 (4) However, if a person is appointed by the other directors as a director of the company while a board limit resolution has effect, the company must confirm the appointment by resolution at the company's next AGM. If the appointment is not confirmed, the person ceases to be a director of the company at the end of the AGM.
 (5) Subsections (1), (2) and (4) have effect despite the company's constitution.
Note: Although subsection (4) is like subsection 201H(3) in many ways, it is not a replaceable rule like subsection 201H(3).