ACCA Applied Skills · Corporate and Business Law (Global) · Company meetings and resolutions
Zetland Ltd is a private company. Its directors propose to pass an ordinary resolution by written resolution rather than hold a meeting. Which statement about this procedure is correct?
A private company may pass resolutions by written resolution instead of holding a general meeting. The procedure is not available to public companies, which must use meetings, and it does not require every member to sign, so the other options are incorrect.
- AIt can be used only if the company's articles expressly permit it and all members sign
- BIt is a way for a private company to pass resolutions without holding a general meetingCorrect
- CIt is available to public companies as well as private companies
Explanation
Under the company law model used in the LW syllabus, a private company may pass members' resolutions in writing without holding a meeting. Public companies must pass their resolutions at a general meeting. Unanimity is not required for the standard written resolution procedure, so the first option is wrong.
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