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A special resolution is a resolution of the company's shareholders which requires at least 75% of the votes cast by shareholders in favor of it in order to pass. Where no special resolution is required, an ordinary resolution may be passed by shareholders with a simple majority more than 50% of the votes cast.
What is a special resolution? Special resolutions — also known as 'extraordinary resolutions' — are needed for more important decisions or those affecting the constitution of a company. These require at least 75% of the shareholders or directors to agree — sometimes as much as 95%.
Special Resolution Definition: “Special resolution means a resolution passed by a majority of not less than two-thirds of the votes cast by the shareholders who voted in respect of that resolution or signed by all the shareholders entitled to vote on that resolution.”
Most resolutions simply need more shareholders to agree than disagree (called an 'ordinary resolution'). You must file special or extraordinary resolutions with Companies House within 15 days of passing them.
It does not require to be filed with the Registrar. A copy of the special resolution must be filed with the Registrar within 30 days from the date of its passing. It is required to transact ordinary business. It is required to transact special business.
Example of matters requiring a special resolution: Approving the giving by a public company (or its subsidiaries) of financial assistance for the acquisition of its shares. Approving a reduction in the company's share capital. Approving a selective off-market share repurchase. Approving an amalgamation with another
Special resolutions still require a 75% majority but, like ordinary resolutions, will require 14 days' notice (subject to any additional requirements in a company's articles) rather than the current 21 days.
An ordinary resolution is referring to a resolution, passed by the members of the company by a bare majority. A special resolution, on the other hand, is the resolution, that is affirmed by the members of the company by three-fourth majority.
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