Company Decision Making

Question 1

When does a matter need to be referred to shareholders for a decision?

Answer 1

1) A matter outside powers
2) A matter within powers but that requires approval

Question 2

How many votes do directors have?

Answer 2

One vote per director, unless the chair, who can have the deadlock vote

Question 3

How can a shareholder resolution be made?

Answer 3

1) General Meeting
2) In writing

Question 4

What percentage is needed for ordinary resolution?

Answer 4

OVER 50%

Question 5

What percentage is needed for special resolution?

Answer 5

75% OR MORE

Question 6

What are the different types of votes in a general meeting?

Answer 6

1) A show of hands
2) A poll vote

Question 7

What is a show of hands vote?

Answer 7

One shareholder = one vote

Question 8

What is a poll vote?

Answer 8

Shareholder gets one vote per share

Question 9

What happens if a shareholder cannot attend a general meeting themselves?

Answer 9

They have the right to appoint a proxy to attend on their behalf

Question 10

Who can demand a poll voting?

Answer 10

1) The chairperson of meeting
2) The directors
3) Two or more persons having right to vote on resolution
4) A person with at least 10% of total voting rights

Question 11

What type of company can pass shareholders’ resolution by written resolution?

Answer 11

Only private companies

Question 12

What are the types of written resolution?

Answer 12

1) Written ordinary resolution (simple majority)
2) Written special resolution (not less than 75%)

Question 13

What type of decisions cannot be passed as written resolution?

Answer 13

1) A removal of a director
2) Removal of an auditor

Question 14

What happens if someone abstains a vote in a written resolution?

Answer 14

It counts as voting against the resolution

Question 15

In a written resolution, how are the votes counted?

Answer 15

One share = one vote
Ten shares = ten votes