๐Ÿ“ Decoding the Written Resolution: When Boring Meetings Are Skipped & Success Is Signed!

Explore the magic of written resolutions in the world of company law! No more boring meetingsโ€”just signatures and success.

Who Said Business Wasn’t Fun? ๐Ÿค”

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 dreamโ€”it’s a reality, thanks to the Companies Act 2006.

Whatโ€™s a Written Resolution? ๐Ÿ“œ

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 rightโ€”no need to endure power-point purgatory or budgetary boredom to make decisions!

Special Resolutions: The 75% Quest ๐ŸŒŸ

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 resolutionsโ€”exclusive and elite!

How Can You Use Written Resolutions? ๐Ÿ› 

In most cases, private companies can pass resolutions through the written way like itโ€™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. ๐Ÿ™Œ

Diagram Time! How It Works: โœ๏ธ

    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? ๐Ÿคทโ€โ™‚๏ธ

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 ๐Ÿ“œ๐Ÿš€

Some companies, especially those with extensive articles of association, may have special rules about passing resolutions. Always check your companyโ€™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! ๐Ÿ“Š

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! ๐ŸŽ‰

  1. What is a written resolution?
  2. How much support is required for a special resolution?
  3. What piece of legislation allows written resolutions without company meetings?
  4. 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

--- primaryColor: 'rgb(121, 82, 179)' secondaryColor: '#DDDDDD' textColor: black shuffle_questions: true --- ### What is a written resolution? - [ ] A decision made in a company meeting. - [x] A resolution signed by a majority of company members and treated as effective. - [ ] A special type of document rehearsed as a play. > **Explanation:** A written resolution is effective as if passed in a meeting, sans the meeting. ### How much support is required for a special resolution? - [ ] 51% - [x] 75% - [ ] 100% > **Explanation:** A special resolution requires 75% support to become effective. ### Under which legislation are written resolutions recognized? - [ ] Companies Act 1985 - [x] Companies Act 2006 - [ ] Napoleonic Code > **Explanation:** Written resolutions are sanctioned by the Companies Act 2006. ### What makes written resolutions advantageous? - [x] They save time and are cost-effective. - [ ] They involve everyone even more. - [ ] They make business slower. > **Explanation:** Written resolutions avoid meetings, saving both time and resources. ### What must companies with extensive articles of association do before passing a resolution? - [x] Check specific rules. - [ ] Throw a party. - [ ] Choose a new CEO. > **Explanation:** Companies with detailed articles need to adhere to their specific rules. ### What percent support is necessary for a written resolution to be effective in most cases? - [x] Majority of members - [ ] All members - [ ] 75% of members > **Explanation:** In most scenarios, a written resolution needs a majority of membersโ€™ signatures. ### What did the previous legislation require for a written resolution? - [x] Signature from all members. - [ ] Approval from the CEO. - [ ] A special ceremony. > **Explanation:** Before, written resolutions needed signatures from all members. ### What are some benefits of using written resolutions? - [x] Privacy, time-savings, and cost-effectiveness. - [ ] More conflict and longer processing times. - [ ] Increased paperwork and boosted stress levels. > **Explanation:** Writing resolutions provides privacy, saves time, and reduces costs.
Wednesday, June 12, 2024 Saturday, November 4, 2023

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