Who Said Business Wasn’t Fun? 🤔
Hey there, future captains of industry! Today, we’re going to explore a little gem called the Written Resolution! Imagine a world where you can get things done without those long, sleep-inducing company meetings. Sounds like a dream, right? Well, buckle up, because it’s not just a dream—it’s a reality, thanks to the Companies Act 2006.
What’s a Written Resolution? 📜
A written resolution is like that super-efficient friend who manages to RSVP, send a gift, and avoid all small talk. Under the Companies Act 2006, a written resolution is a resolution signed by a majority of company members and treated as valid as if it had been passed at a properly convened company meeting. Yes, you read that right—no need to endure power-point purgatory or budgetary boredom to make decisions!
Special Resolutions: The 75% Quest 🌟
However, not all resolutions are created equal. Enter the superhero: the Special Resolution. This bad boy requires a whopping 75% of members’ support to become effective. Think of it as the VIP lounge of resolutions—exclusive and elite!
How Can You Use Written Resolutions? 🛠
In most cases, private companies can pass resolutions through the written way like it’s no big deal. For other types of companies, the ability to use written resolutions might be tucked away in their articles of association. Under previous legislation, every member had to sign the written resolution, making it harder to get things done. But fret not! The Companies Act 2006 has streamlined the process. 🙌
Diagram Time! How It Works: ✍️
gantt
dateFormat YYYY-MM-DD
section Resolution Process
Idea Generation :active, 2023-10-01, 3d
Drafting Resolution :crit, 2023-10-04, 4d
Collect Signatures : 2023-10-08, 7d
Resolution Effective : 2023-10-15, 1d
Why Choose Written Resolutions? 🤷♂️
1. Time-Saver Extraordinaire: No more waiting for the next company meeting.
2. Cost-Effective: Say goodbye to venue rentals and coffee carts.
3. Privacy Please: Discussions stay within the document. No more office gossip!
Special Cases: Companies with Super Articles 📜🚀
Some companies, especially those with extensive articles of association, may have special rules about passing resolutions. Always check your company’s specific rules before skipping the meetings! Knowing these little nuances can make you the hero of your boardroom.
Formula Time! Because Numbers are Fun! 📊
If you ever need to calculate the percent of members who support a resolution (aka %Support):
1%Support = (MembersWhoSigned / TotalMembers) * 100
Fun Quiz to Test Your Knowledge! 🎉
- What is a written resolution?
- How much support is required for a special resolution?
- What piece of legislation allows written resolutions without company meetings?
- Why might some companies have special rules for written resolutions?
Remember, folks, being savvy with written resolutions can save your business both time and money. So go forth and streamline those processes like the corporate maestro you are!
{{author}} - Making Accounting Quirky since 2023
