Which resolution usually requires a higher voting threshold than an ordinary resolution?
Correct answer: A. Special resolution
- A. Special resolution
- B. Routine board decision
- C. Proxy appointment
- D. Director’s notice
Explanation
A special resolution requires a statutory supermajority, commonly at least three-fourths of the votes cast, subject to the applicable company law requirements. It is used for significant matters rather than routine shareholder business.
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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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