Which of the following can a member with at least 5% of a company's shares do?

Study for the ICAEW ACA Certificate Level - Law Test. Dive into multiple choice questions and detailed explanations to prepare effectively. Get ready for your exam!

A member with at least 5% of a company's shares has specific rights that enhance their ability to influence corporate governance. One of these rights includes the ability to require the directors to call a general meeting. This means that shareholders with this level of ownership can request a meeting to address particular concerns or proposals, such as changing company policies, proposing resolutions, or discussing the company's performance. This right is particularly significant because it empowers minority shareholders to have a voice in company affairs.

In contrast, forcing the sale of company assets is generally beyond the authority of a minority shareholder. The sale of assets is at the discretion of the board of directors, who make decisions based on the overall interest of the company. Similarly, overriding board decisions also falls outside the powers of a minority shareholder, as such authority is reserved for the management unless overridden by a broader shareholder vote, which usually requires a higher threshold of agreement.

Lastly, while shareholders do have rights regarding dividends, a member cannot demand a dividend be paid. The decision to declare dividends is typically made by the board of directors, taking into account various factors such as the company's profitability and cash flow. Therefore, the correct understanding of the power of a shareholder with at least 5% of the shares primarily revolves around their

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