- 4 Marks
Question
Distinguish between an Ordinary Resolution and a Special Resolution.
(4 marks)
Answer
- Ordinary Resolution:
- An ordinary resolution is one that is passed by a simple majority of votes cast by members entitled to vote, either in person or by proxy, at a general meeting.
- Typically used for routine decisions such as the appointment of directors, approval of dividends, and other standard business matters.
- Special Resolution:
- A special resolution requires a higher threshold and is passed by not less than three-fourths (3/4) of the votes cast by members entitled to vote, either in person or by proxy, at a general meeting.
- Special resolutions are used for significant decisions such as amending the company’s constitution, changing the company’s name, or approving a merger or liquidation.
(2 marks each = 4 marks)
- Tags: Company Law, Ordinary Resolution, Special Resolution, Voting Requirements
- Level: Level 1
- Topic: Company Meetings and Resolutions
- Series: MAY 2020
- Uploader: Dotse