ACCA Corporate and Business Law (F4) Certification Practice Exam 2025 - Free Practice Questions and Study Guide

Question: 1 / 720

A written ordinary resolution requires the approval of which percentage of voting rights?

More than 50% of the total voting rights of eligible members

A written ordinary resolution requires the approval of more than 50% of the total voting rights of eligible members. This means that for the resolution to be passed, it must receive a majority of votes from all members who have the right to vote, regardless of whether they participated in the vote or not.

This voting requirement reflects the principle of majority rule in corporate decision-making, allowing for effective governance by ensuring that the views of a larger proportion of shareholders are taken into account. The focus is on the total number of eligible voting rights rather than just those who choose to vote, which ensures that the resolution has sufficient backing from the overall membership base.

In contrast, options that suggest only counting those members who actually vote or relying on a smaller subset of members (like the largest shareholders) diminish the democratic nature of the decision-making process by not considering the entire pool of eligible voters. Unanimous approval, while ensuring comprehensive agreement, is impractical for ordinary resolutions and is typically reserved for special circumstances or certain types of decisions requiring a higher threshold of consensus.

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More than 50% of the total voting rights of members actually voting

Unanimous approval of those entitled to vote

Majority of voting rights from the largest shareholders

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