ACCA · Question 13 · The formation and constitution of business organisations
Section A
The founders of a tech startup want to ensure that a specific clause in their Articles of Association, which protects their intellectual property rights, cannot be altered by a standard special resolution (75% majority). They include a provision requiring a 95% majority to change this specific clause. What is the legal term for this type of provision?
Answer options:
An absolute restriction
A provision for entrenchment
A class right
A shareholder veto
60 questions · hints · full answers · grading
Expert