What is Consequences of not passing a Special Resolution for certain actions?
Nexa Consultancy | Startup & Finance Glossary
Certain actions under the Companies Act, like changing the company name, altering the Articles of Association, or related party transactions above a certain limit, require a Special Resolution (passed by a 75% majority of shareholders). Taking these actions with only a normal Board Resolution is invalid and a non-compliance.
Startup Example: A startup wants to increase its authorized share capital. This requires a special resolution at a general meeting. Just passing a board resolution is not enough.
Our Corporate Law team advises on the correct procedures for all corporate actions.