In page navigation

Special resolution

Updated: Aug 20, 2021

This features in company law. It is similar in form to an extraordinary resolution but, in addition, twenty-one days’ notice of the meeting at which it is to be proposed is necessary. Special resolutions are normally reserved for important changes in the constitution of a company, e.g. alteration (where permissible) of the memorandum of association, changes in the company’s articles of association, reduction of capital, etc.

As with an extraordinary resolution the majority needed is three-quarters of those voting, whether present or not. This means that a resolution, where no poll is asked for, could effectively be passed by a small number of members present at the meeting, despite the fact that the motion would have been rejected had all those entitled to vote done so either personally or by proxy.

Reference: The Penguin Business Dictionary , 3rd edt.

Sources & references
Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.