Chapter 9 - Company Meetings and Decision Making

Question 1

How do companies make decisions?

Answer 1

Through resolutions passed at general meetings or by written resolution. The type of resolution (ordinary or special) depends on the matter being decided.

Question 2

What is the difference between an ordinary and special resolution?

Answer 2

An ordinary resolution requires a simple majority (>50%), while a special resolution requires at least 75% of the votes cast.

Question 3

What is the unanimous assent rule?

Answer 3

If all members entitled to vote agree to a decision informally, it may be valid even without a formal resolution.

Question 4

What are the requirements for calling a general meeting?

Answer 4

Notice must be given to all members, stating the time, place, and general nature of the business. The default notice period is 14 days.

Question 5

What is a class meeting?

Answer 5

A meeting of a specific class of shareholders (e.g preference shareholders) to approve changes affecting their rights.

Question 6

How can companies encourage member engagement?

Answer 6

Through clear communication, accessible meetings, and mechanisms for feedback participation.

Question 7

Quick hit
Ordinary Resolution

Answer 7

Passed by a simple majority of votes

Question 8

Quick hit
Special Resolution

Answer 8

Requires at least 75% of votes to pass.

Question 9

Quick hit
Written Resolution

Answer 9

A resolution passed without a meeting, used in private companies.

Question 10

Quick hit
General meeting

Answer 10

A formal meeting of members to make decisions.

Question 11

Quick hit
Class Meeting

Answer 11

Meeting of a specific class of shareholders.

Question 12

Quick hit
Unanimous Assent

Answer 12

Informal agreement by all members that may be valid.

Question 13

Quick hit
s.281 CA 2006

Answer 13

Defines types of resolutions and their requirements