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CMA Intermediate · Business Laws and Ethics · Rights of Shareholders

Under Section 48 of the Companies Act, 2013, the rights attached to a class of shares may be varied (where the articles contain a provision for such variation) with the written consent of the holders of not less than what proportion of the issued shares of that class, or by a special resolution passed at a separate meeting of that class?

The 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 memorandum or articles provide for variation.

  1. AOne-half
  2. BThree-fourthsCorrect
  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 the class, or a special resolution at a separate meeting of that class. One-half and two-thirds are lower thresholds not prescribed by the section.

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