ACCA Applied Skills · Corporate and Business Law (Global) · Share capital
Tamarind Co has a capital reduction proposal that needs a special resolution. Under the usual rules, what majority is required to pass a special resolution at a meeting?
A special resolution needs at least 75% of the votes cast. Reducing share capital normally requires this higher majority rather than a simple majority, because it affects creditors and shareholders. Unanimity is not required.
- AMore than 50% of votes cast
- BAt least 75% of votes castCorrect
- CAt least 90% of votes cast
- DUnanimous approval of all members entitled to vote
Explanation
A reduction of share capital is typically approved by special resolution, which requires a majority of at least 75% of the votes cast. An ordinary resolution needs only more than 50%, so that option is too low. Unanimity and 90% are not required.
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