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ACCA Applied Skills · Corporate and Business Law (Global) · Company meetings and resolutions

At a general meeting of Brightway Co, 600 votes are cast on a resolution to remove a director, 330 in favour and 270 against. Under the usual rule, the resolution is passed or failed as which of the following?

The resolution passes as an ordinary resolution, because removal of a director needs only a simple majority of votes cast. With 330 of 600 votes in favour, support is 55%, which exceeds 50%, so no 75% threshold is needed.

  1. APassed as an ordinary resolution because 55% voted in favourCorrect
  2. BFailed because removal requires a special resolution of 75%
  3. CFailed because ordinary resolutions need 60% in favour
  4. DPassed as a special resolution because a majority voted in favour

Explanation

Removal of a director is by ordinary resolution, needing more than 50% of votes cast. 330 of 600 is 55%, so it passes. It would not satisfy a 75% special resolution, but that is not required here.

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