Australian Legal Templates
Special Company 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.
VIEW PAGE AND DOWNLOAD
A resolution is the formal means by which decisions are made by a meeting of company members. There are two types of resolutions: ordinary and special. The Corporations Act 2001 (the Corporations Act) requires many decisions that affect a company to be made by resolution, some of which must be by special resolution. In addition, the constitution of a company may also require that other decisions be made by either an ordinary resolution or a special resolution.
General requirements for passing resolutions
The general requirements under the Corporations Act for the passing of any resolution are:
is passed at a meeting, which is properly convened and satisfies the quorum requirements, and
is entered in the books kept by the company for that purpose within one month after the meeting is held.
The minutes must be signed by the chair of the meeting at which the resolution was passed or by the chair of the next meeting. Non-compliance with these requirements could invalidate the outcome of the resolution.
Voting on resolutions
Where a company has share capital, a member has one vote for each share held subject to any rights or restrictions attached to any class of shares. For a company without share capital, every member is entitled to one vote. The chair has a casting vote, and if a member, also a member’s vote.
Ordinary resolutions are not specifically defined in the Corporations Act and require only a simple majority to pass (i.e. more than 50% of the members present at the meeting, either in person, or by proxies, if allowed by the constitution).
Some of the matters on which an ordinary resolution is sufficient are:
- election/re-election of directors
- appointment of an auditor
- acceptance of reports at the annual general meeting
- strategic, commercial decisions
- increase or reduction in the number of directors
- passing a board limit resolution (for public companies).
The notice of meeting sent to members advising them of the meeting must set out an intention to propose the special resolution and state the special resolution. This is in addition to the other information required to be provided in a notice of a meeting including the place, date and time of the meeting, the general nature of the meeting’s business and information about proxy votes where applicable.
Generally, notice of a meeting to members of a company must be given 21 days before the meeting is to be held. A listed company must give a least 28 days notice. Shorter notice can be given where members with at least 95% of the votes that may be cast at the meeting agree beforehand. However, the provision for shorter notice does not apply to a resolution to remove or appoint a director or to remove an auditor.
Notice of a meeting to members of a registered scheme must be given at least 21 days before the meeting is to be held. Registered schemes can’t give shorter notice.
This information is not legal advice by Precedents Online or its Authors.
Contact – Support@precedentsonline.com.au
Who We Are
Precedents Online sells legal documents to the legal profession in Australia.
What We Do
Precedents shown on this site have been drafted by practicing Australian lawyers and kept up to date with changes in the law.
Simple to Use
Immediate Word Download to your email inbox. Edit and Reuse as you need. No Memberships required.
- Print multiple copies.
- Download, edit and reuse.
Free Legal Drafting Booklet
Free Legal Drafting Book to guide you through the process of drafting your legal documents.
Guaranteed Safe Checkout
All our Legal Documents are in Word Foarmat.
Download, save and reuse as many times as you require.
No Memberships, Logins Required.
No forms or Templates to complete before download. Download immediatley.
Free Legal Booklet
FREE Legal Drafting Booklet to guide you with drafting your legal documents.
Document Review Service by Lawyer.
Australian Owned & Operated. All Templates drafted by practicing Australian Lawyers.