What is the principal voting basis for an ordinary resolution of shareholders?
Correct answer: A. Simple majority of votes cast
- A. Simple majority of votes cast
- B. Unanimous approval of all members
- C. Two-thirds of issued shares
- D. Approval by the registrar
Explanation
An ordinary resolution normally passes when votes in favour exceed votes against among the votes validly cast. Unanimity and a two-thirds threshold may apply in special situations, but they are not the normal rule for an ordinary resolution.
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About Company Law Basics
Company law covers incorporation, separate legal personality, limited liability, shares, the memorandum and articles of association, and the powers and duties of directors. It also includes shareholder meetings, resolutions, company records, audit, winding up and the differences between a registered company, partnership and sole proprietorship.
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