ExpertEasy2 marksMultiple Choice
Syllabus F: Management, administration and the regulation of companiesSection ACorporate and Business Law
ACCA · Question 20 · Syllabus F: Management, administration and the regulation of companies
A company wishes to alter its Articles of Association. What type of resolution is required to pass this alteration, and what majority is needed?
A company wishes to alter its Articles of Association. What type of resolution is required to pass this alteration, and what majority is needed?
Answer options:
A.
Ordinary resolution; more than 50% of votes cast.
B.
Special resolution; not less than 75% of votes cast.
C.
Ordinary resolution; not less than 75% of votes cast.
D.
Special resolution; 100% of votes cast.
How to approach this question
Identify the statutory requirement for altering a company's constitution.
Full Answer
B.Special resolution; not less than 75% of votes cast.✓ Correct
Under s.21 of the Companies Act 2006, a company may amend its Articles of Association by a special resolution. A special resolution requires a majority of not less than 75% of the votes cast by those entitled to vote.
Common mistakes
Assuming an ordinary resolution (50%) is sufficient to change the Articles.
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