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

Kora plc holds a general meeting. A show of hands rejects an ordinary resolution, but members holding a significant proportion of voting rights, who supported the resolution, wish to challenge the result. What should they do?

They should demand a poll. A poll counts votes by number of shares held rather than by heads, so members with larger holdings can overturn a show of hands result that does not reflect the voting power of the shareholders.

  1. ADemand a poll, in which votes are counted according to the number of shares heldCorrect
  2. BApply to the court to void the show of hands automatically
  3. CAsk the auditor to recount the show of hands
  4. DWait for the next annual meeting, as the result cannot be challenged

Explanation

A poll can be demanded, subject to the permitted thresholds in the articles or law, and replaces the show of hands result with a count weighted by shares held. Members with large holdings who lose a show of hands can therefore reverse the outcome. The auditor has no role in recounting, and no automatic court voiding exists.

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