Ordinary resolutions vs special resolutions
Transcript:
Hello!
When companies hold general meetings, they pass resolutions (approvare delibere). Remember, companies can hold two types of general meetings: The Annual General Meeting once a year, while any other general meeting for urgent business is called an Extraordinary General Meeting (See Peter’s Pills 29). There can be two types of resolutions passed at any general meeting: ordinary resolutions or special resolutions.
Ordinary resolutions are resolutions which are passed for the ordinary course of business of the company. They require a simple majority vote to be passed which means 50% of the votes plus at least one more valid vote. Ordinary resolutions are used where the directors have no authority to make certain decisions and where shareholders are called to vote.
Ordinary resolutions are often used to pass motions to:
- Pay dividends;
- Appoint and remove directors;
- Approve directors’ service contracts;
- Allot (assegnare) new shares.
Special resolutions on the other hand require at least a 75% majority vote to be passed and signal a significant change to a company. Special resolutions are needed when the company’s articles of association (statuto) require a special resolution to pass certain motions or when voting on motions in which the UK Companies Act 2006 requires a special resolution.
More specifically, Companies Act 2006 requires a special resolution to:
- Change the company’s name;
- Amend the articles of association (statuto);
- Reduce the company’s share capital;
- Disapply shareholder pre-emption rights (disapplicare i diritti di prelazione);
- Change the company’s status – from Plc to Ltd or viceversa, etc.;
- Voluntarily wind up the company (mettere in liquidazione volontaria).
Thank you very much and see you next time for more Peter’s Pills to improve your Legal English!
See more about resolutions and meetings in the UK Company’s Act 2006
Legal English – Sommario delle Lezioni
- Legal English – Peter’s Pills – Lesson 31
- Legal English – Peter’s Pills – Lesson 30
- Legal English – Peter Pill’s – Lesson 29
- Legal English – Peter Pill’s – Lesson 28
- Legal English – Peter Pill’s – Lesson 27
- Legal English – Peter Pill’s – Lesson 26
- Legal English – Peter Pill’s – Lesson 25
- Legal English – Peter Pill’s – Lesson 24
- Legal English – Peter Pill’s – Lesson 23
- Legal English – Peter Pill’s – Lesson 22
- Legal English – Peter Pill’s – Lesson 21
- Legal English – Peter Pill’s – Lesson 20
- Legal English – Peter Pill’s – Lesson 19
- Legal English – Peter Pill’s – Lesson 18
- Legal English – Peter’s Pills – Lesson 17
- Legal English – Peter’s Pills – Lesson 16
- Legal English – Peter’s Pills – Lesson 15
- Legal English – Peter’s Pills – Lesson 14
- Legal English – Peter’s Pills – Lesson 13
- Legal English – Peter’s Pills – Lesson 12
- Legal English – Peter’s Pills – Lesson 11
- Legal English: Peter’s Pills – Lesson 10
- Legal English: Peter’s Pills – Lesson 9
- Legal English: Peter’s Pills – Lesson 8
- Legal English: Peter’s Pills – Lesson 7
- Legal English: Peter’s Pills – Lesson 6
- Legal English: Peter’s Pills – Lesson 5
- Legal English: Peter’s Pills – Lesson 4
- Legal English: Peter’s Pills – Lesson 3
- Legal English: Peter’s Pills – Lesson 2
- Legal English: Peter’s Pills – Lesson 1

AUTORE

Peter Liebenberg è uno specialista nella formazione delle persone nella conoscenza della lingua inglese. Ha creato molti corsi nel campo dell’inglese per professionisti, tra cui English for banking, English for business e English for Insurance, ma ha sempre avuto un debole per l’inglese legale. Altri corsi che ha creato comprendono Phrasal Verbs I e II. Quando Peter non fa formazione, corre a Parco Sempione, crea arte nel suo studio sulla Martesana e fa volontariato.