What is the requirement for passing a written resolution in a private company?

Study for the ICAEW ACA Certificate Level - Law Test. Dive into multiple choice questions and detailed explanations to prepare effectively. Get ready for your exam!

In the context of a private company, a written resolution allows shareholders to make decisions without convening a formal meeting. The requirement for passing a written resolution is that it must be signed by the requisite majority of shareholders entitled to vote on the matter. This means that the necessary number of shareholders must provide their signatures on the resolution document to indicate their agreement.

The focus on signatures is important because it reflects the intent and consent of the shareholders, fulfilling the requirement for validly adopting the resolution. In private companies, written resolutions are often used for efficiency, allowing decisions to be made quickly and without the logistical challenges of gathering members for a meeting.

The other options do not accurately describe the requirements for written resolutions: a simple majority at a meeting would only apply if a meeting were convened; requiring a larger majority than an ordinary resolution pertains to specific resolutions (not related to written resolutions); and debate during a meeting is not a characteristic of written resolutions, which are designed to be executed without the need for discussion.

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