ExpertEasy1 markMultiple Choice
Management, administration and the regulation of companiesSection ASyllabus FCorporate and Business Law
ACCA · Question 40 · Management, administration and the regulation of companies
What voting threshold is required to pass an 'ordinary resolution' at a company's general meeting?
What voting threshold is required to pass an 'ordinary resolution' at a company's general meeting?
Answer options:
A.
Exactly 50% of the votes cast.
B.
A simple majority (more than 50%) of the votes cast.
C.
At least 75% of the votes cast.
D.
100% of the votes cast.
How to approach this question
Distinguish between ordinary (>50%) and special (>=75%) resolutions.
Full Answer
B.A simple majority (more than 50%) of the votes cast.✓ Correct
Under section 282 of the Companies Act 2006, an ordinary resolution of the members (or of a class of members) of a company means a resolution that is passed by a simple majority (i.e., more than 50%) of the votes cast by those entitled to vote.
Common mistakes
Confusing the ordinary resolution threshold (>50%) with the special resolution threshold (75%).
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