Blood on the Boardroom Floor

Key Points:
The Ace Developments decision illustrates the consequences of getting a notice of meeting wrong, and also provides clear rules to follow.

Most boardroom stoushes are resolved out of the public eye. Occasionally, however, they make it into court and, when they do, provide useful lessons for directors and their advisers.

The recent fall-out among the directors of Ace Developments was no exception. Among other things, the resulting court case showed that:

• a board meeting can be hamstrung if the notice of meeting is too detailed;
• being disqualified as a director doesn't prevent you voting your nominees onto the board.

This briefing on the case highlights points which will be relevant to corporate counsel and company secretaries.