Decisions in a Company

Question 1

1. How are decisions made within a company?

Answer 1

Answer: Decisions within a company are typically made through resolutions passed at meetings of its members, known as general meetings.

Question 2

What is meant by “voting right” as defined in Section 2(73)?

Answer 2

Voting right refers to a member’s ability to cast a vote on matters discussed at a company meeting. This can be exercised in person, through video-link, by proxy, or via postal ballot.

Question 3

3. What is an “ordinary resolution”?

Answer 3

An ordinary resolution is a resolution passed by a simple majority of the members entitled to vote at a general meeting. This can be exercised in person, by proxy, or through postal ballot, as specified in the company’s articles or by relevant regulations.

Question 4

What is a “special resolution”?

Answer 4

A special resolution requires a higher threshold: it must be passed by at least three-fourths of the members entitled to vote at a general meeting. Additionally, a notice period of at least 21 days specifying the intention to propose the resolution as a special resolution must be given.

Question 5

What are the different ways a member can exercise their voting right at a company meeting?

Answer 5

Answer 1:

In Person: Physically attending the meeting.
By Proxy: Appointing another member to vote on their behalf.
By Postal Ballot: Voting through a mail-in ballot.
Through Video-Link: Participating in the meeting virtually.
Mnemonic: “P.P.P.V.” (Person, Proxy, Postal, Video)

Question 6

What is the difference between an ordinary resolution and a special resolution in terms of voting requirements?

Answer 6

Ordinary Resolution:

Requires a simple majority of votes.
No specific notice period is generally required.
Special Resolution:

Requires a three-fourths majority of votes.
Requires a minimum of 21 days’ notice.
Mnemonic: “Ordinary: One-half, Special: Stronger (three-fourths)”

Question 7

What are the key responsibilities of a Registrar in a company?

Answer 7

Registration of Companies: Handling the initial registration process for new companies.
Document Management: Receiving and maintaining various documents submitted by companies.
Record Keeping: Maintaining records of mortgages, charges, and other company-related documents.
Information Gathering: Having the authority to request information and explanations from company officers.
Record Inspection: Conducting inspections of company books and records.
Mnemonic: “R.D.R.I.R.” (Registration, Documents, Records, Information, Records Inspection)