Companies Act 2006

Chapter 1U.K.General provisions about resolutions

281ResolutionsU.K.

(1)A resolution of the members (or of a class of members) of a private company must be passed—

(a)as a written resolution in accordance with Chapter 2, or

(b)at a meeting of the members (to which the provisions of Chapter 3 apply).

(2)A resolution of the members (or of a class of members) of a public company must be passed at a meeting of the members (to which the provisions of Chapter 3 and, where relevant, Chapter 4 apply).

(3)Where a provision of the Companies Acts—

(a)requires a resolution of a company, or of the members (or a class of members) of a company, and

(b)does not specify what kind of resolution is required,

what is required is an ordinary resolution unless the company's articles require a higher majority (or unanimity).

(4)Nothing in this Part affects any enactment or rule of law as to—

(a)things done otherwise than by passing a resolution,

(b)circumstances in which a resolution is or is not treated as having been passed, or

(c)cases in which a person is precluded from alleging that a resolution has not been duly passed.

282Ordinary resolutionsU.K.

(1)An ordinary resolution of the members (or of a class of members) of a company means a resolution that is passed by a simple majority.

(2)A written resolution is passed by a simple majority if it is passed by members representing a simple majority of the total voting rights of eligible members (see Chapter 2).

(3)A resolution passed at a meeting on a show of hands is passed by a simple majority if it is passed by a simple majority of—

(a)the members who, being entitled to do so, vote in person on the resolution, and

(b)the persons who vote on the resolution as duly appointed proxies of members entitled to vote on it.

(4)A resolution passed on a poll taken at a meeting is passed by a simple majority if it is passed by members representing a simple majority of the total voting rights of members who (being entitled to do so) vote in person or by proxy on the resolution.

(5)Anything that may be done by ordinary resolution may also be done by special resolution.

283Special resolutionsU.K.

(1)A special resolution of the members (or of a class of members) of a company means a resolution passed by a majority of not less than 75%.

(2)A written resolution is passed by a majority of not less than 75% if it is passed by members representing not less than 75% of the total voting rights of eligible members (see Chapter 2).

(3)Where a resolution of a private company is passed as a written resolution—

(a)the resolution is not a special resolution unless it stated that it was proposed as a special resolution, and

(b)if the resolution so stated, it may only be passed as a special resolution.

(4)A resolution passed at a meeting on a show of hands is passed by a majority of not less than 75% if it is passed by not less than 75% of—

(a)the members who, being entitled to do so, vote in person on the resolution, and

(b)the persons who vote on the resolution as duly appointed proxies of members entitled to vote on it.

(5)A resolution passed on a poll taken at a meeting is passed by a majority of not less than 75% if it is passed by members representing not less than 75% of the total voting rights of the members who (being entitled to do so) vote in person or by proxy on the resolution.

(6)Where a resolution is passed at a meeting—

(a)the resolution is not a special resolution unless the notice of the meeting included the text of the resolution and specified the intention to propose the resolution as a special resolution, and

(b)if the notice of the meeting so specified, the resolution may only be passed as a special resolution.

284Votes: general rulesU.K.

(1)On a vote on a written resolution—

(a)in the case of a company having a share capital, every member has one vote in respect of each share or each £10 of stock held by him, and

(b)in any other case, every member has one vote.

(2)On a vote on a resolution on a show of hands at a meeting—

(a)every member present in person has one vote, and

(b)every proxy present who has been duly appointed by a member entitled to vote on the resolution has one vote.

(3)On a vote on a resolution on a poll taken at a meeting—

(a)in the case of a company having a share capital, every member has one vote in respect of each share or each £10 of stock held by him, and

(b)in any other case, every member has one vote.

(4)The provisions of this section have effect subject to any provision of the company's articles.

285Votes: specific requirementsU.K.

(1)Where a member entitled to vote on a resolution has appointed one proxy only, and the company's articles provide that the proxy has fewer votes in a vote on a resolution on a show of hands taken at a meeting than the member would have if he were present in person—

(a)the provision about how many votes the proxy has on a show of hands is void, and

(b)the proxy has the same number of votes on a show of hands as the member who appointed him would have if he were present at the meeting.

(2)Where a member entitled to vote on a resolution has appointed more than one proxy, subsection (1) applies as if the references to the proxy were references to the proxies taken together.

(3)In relation to a resolution required or authorised by an enactment, if a private company's articles provide that a member has a different number of votes in relation to a resolution when it is passed as a written resolution and when it is passed on a poll taken at a meeting—

(a)the provision about how many votes a member has in relation to the resolution passed on a poll is void, and

(b)a member has the same number of votes in relation to the resolution when it is passed on a poll as he has when it is passed as a written resolution.

286Votes of joint holders of sharesU.K.

(1)In the case of joint holders of shares of a company, only the vote of the senior holder who votes (and any proxies duly authorised by him) may be counted by the company.

(2)For the purposes of this section, the senior holder of a share is determined by the order in which the names of the joint holders appear in the register of members.

(3)Subsections (1) and (2) have effect subject to any provision of the company's articles.

287Saving for provisions of articles as to determination of entitlement to voteU.K.

Nothing in this Chapter affects—

(a)any provision of a company's articles—

(i)requiring an objection to a person's entitlement to vote on a resolution to be made in accordance with the articles, and

(ii)for the determination of any such objection to be final and conclusive, or

(b)the grounds on which such a determination may be questioned in legal proceedings.