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Is the percentage required to pass a special resolution 75% .
I just did a multiple choice revision exercise on Open tuition and it said: Out of 1000 members 1 is all that is required to pass a special resolution.
Would you please clear up my confusion.
Yes, it’s a trick question in the revision exercise.
75% is the magic number – but 75% of what?
The people who vote? The number of shareholders? The number of votes? The number of votes cast?
If there are 500,000 people in the AGM and the Chair puts a resolution to the vote and I, with just 1 share and 1 vote, vote in favour and the Chair asks for votes against and everybody abstains, then the resolution is carried with a 100% majority – my 1 vote in favour and no votes against.
This illustrates the importance of knowing exactly what is meant by a 75% majority.
What if we had all voted – 500,000 of us and the others ALL voted against and I have 1,500,000 votes whereas all the other shareholders have just 1 vote each.
Again, the resolution is passed – my 1,500,000 votes in favour and only 500,000 votes against
Confusion gone? or grown?
I think I understand now. Your saying that the 75% is more pertinent to the number of votes more than the number of members.
E.g if it were by a show of hands 75% of the persons who voted would be necessary to pass the resolution.
but it it were to go to a vote, it would be based on 75% of the votes cast. which means that all that is needed is a single member or proxy holding more than 75% of the votes to pass a resolution.
therefore 1 out of 1000 members can pass a resolution based on the circumstances.
thank you Mr.mikelittle that revison question and your explanation were very helpful.
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