Company Law. Directors

[Scot22]

Would a resolution passed at an A.G.M be able to limit the amount of money directors can spend without consulting members ?

[echat11]

If there was such a resolution at the AGM and if members voted to pass such a resolution, then yes.

[Scot22]

You are a star. Further detail for reassurance. Can it be enforced ? If I use the word must, is it legally correct ?

[echat11]

If the directors ignored the resolution they would be breaching their 'Fiduciary duties', then the members could take action. 'Must' is a good word to use.

[Scot22]

Thanks extremely helpful.