ACCA LW · Chapter 9 · Question 2 of 11
Under s630 Companies Act 2006, how may the rights attached to a class of shares be varied where the articles contain no provision for variation?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) With the written consent of holders of at least three-quarters in nominal value of the class, or a special resolution at a separate class meeting
Explanation
Where the articles are silent, s630 allows class rights to be varied with the consent in writing of holders of at least 75% in nominal value of the issued shares of the class, or by a special resolution passed at a separate meeting of that class. Holders of at least 15% of the class who did not consent may apply to court to have the variation cancelled under s633. A board resolution or an ordinary resolution of all members is not sufficient.
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