ICAEW BL · Chapter 8 · Question 6 of 10
Halyard Ltd proposes a special resolution at a general meeting to amend its articles. On a poll, 800 votes are cast in favour and 280 against, and 120 votes are not cast because those members abstain. What is the outcome?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The resolution fails, because fewer than 75% of the votes cast were in favour
Explanation
A special resolution requires a majority of not less than 75% of the votes cast. Votes cast = 800 + 280 = 1,080, and abstentions are ignored. The proportion in favour is 800 ÷ 1,080 = 74.07% (to two decimal places), which is below 75%, so the resolution fails. A simple majority is enough only for an ordinary resolution, and two-thirds is not the statutory test.
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