Sir Vijay
I'm stuck between ordinary resolution & special resolution and where they would be needing. Can you explain to me when do we need each of them in a situation? There are so many situations where sometimes an ordinary resolution is needed such as is in the situation of appointment of directors require to be passed, but special resolution is needed when there is any change in share capital.
There are so many situations and I can't memorize everything so can you please explain to me when do we use ordinary and when to use special resolution??
Ask the Tutor ACCA LW
resolutions
Hi Ashley
So an Ordinary Resolution is needed to do the following key decisions:
- Appoint Director/Auditors
- Remove Director/Auditors
- Appoint a Liquidator/Administrator
- Authorising a director to issue shares
- Authorise the limit of an Auditors Liability
A Special Resolution is needed to do the following key decisions:
- Change the name
- Change the Articles
- Change (reduce) Share Capital
- Place a company into Voluntary Liquidation
- Authorise a repayment of shares from out of capital
There may be a few others in your study text too.
Unfortunately it is a case of memorising the lists. My advise would be to just keep repeating the lists and saying it out a loud, the more you say it, the more it will stick. Just keep practising and testing yourself. Also note that there is a common theme with the Ordinary Resolutions as a lot of them are about Appointments and Authorising!! This may help you remember :)
I hope this helps?
Kind regards,
Vijay
Thankss Sir :) You explained it well
My pleasure :)
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