Skip to content

CMA Intermediate · Business Laws and Ethics · Rights of Shareholders

Sharma Foods Ltd has issued shares of a class whose rights its articles allow to be varied by the specified majority. Under section 48, the rights may be varied with the written consent of holders of at least what proportion of the issued shares of that class, or by a special resolution at a separate meeting of that class?

Holders of not less than three-fourths of the issued shares of the class must consent in writing, or a special resolution must be passed at a separate meeting of that class. This applies where the articles provide for variation or the terms of issue do not prohibit it.

  1. AThree-fourthsCorrect
  2. BOne-half
  3. CTwo-thirds
  4. DNine-tenths

Explanation

Section 48(1) requires consent in writing of holders of not less than three-fourths of the issued shares of that class, or a special resolution passed at a separate meeting of that class, provided the memorandum or articles allow it or, absent a provision, the terms of issue do not prohibit it.

Did you get it right without looking?

One question tells you little. A timed set on Rights of Shareholders shows your real accuracy, how long you take and where you lose marks.

Practise Rights of ShareholdersFree diagnostic mock

More Rights of Shareholders questions