ExpertEasy2 marksMultiple Choice
The formation and constitution of business organisationsThe formation and constitution of business organisationsCompany constitution
ACCA · Question 12 · The formation and constitution of business organisations
Section A
What is the required majority to pass a special resolution to alter a company's Articles of Association?
Section A
What is the required majority to pass a special resolution to alter a company's Articles of Association?
Answer options:
A.
More than 50% of the votes cast by members entitled to vote.
B.
Not less than 75% of the total voting rights of all eligible members.
C.
Not less than 75% of the votes cast by members entitled to vote.
D.
100% agreement of all members.
How to approach this question
Distinguish between ordinary and special resolutions, and note that the percentage applies to votes cast, not total membership.
Full Answer
C.Not less than 75% of the votes cast by members entitled to vote.✓ Correct
Under the Companies Act 2006, altering the Articles of Association requires a special resolution. A special resolution must be passed by a majority of not less than 75% of the votes cast by members who are entitled to vote and do vote.
Common mistakes
Confusing 'votes cast' with 'total eligible voting rights'.
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