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Can someone paraphrase this The main duty of shareholders is to pass resolutions at general meetings by voting in their shareholder capacity. This duty is
Can someone paraphrase this
The main duty of shareholders is to pass resolutions at general meetings by voting in their shareholder capacity. This duty is particularly important as it allows the shareholders to exercise their ultimate control over the company and how it is managed. Shareholders can vote in one of two ways: on a show of hands or through a poll vote where each vote will be proportionate to the number of shares held by each shareholder. A show of hands is usually the preferred method of voting that takes place at general meetings.
There are two resolutions that can be voted on at a shareholders meeting: an ordinary resolution, and a special resolution.
Ordinary resolution
An ordinary resolution is passed by the shareholders if a simple majority of shareholders present at the meeting vote in favour of the proposal. Therefore, more than 50% of the votes cast must be in favour, usually displayed through a show of hands.
Special resolution
A special resolution is sometimes required by the Companies Act in certain cases; for instance, to change the Articles of Association, or for other important or sensitive matters. The Articles can also require a special resolution. For a special resolution to be passed, a 75% majority must vote in favour. If there is no specific mention of what type of resolution is required, the presumption is that there will be a vote on an ordinary resolution.
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