What kind of resolutions can shareholders use to appoint directors?

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Shareholders can appoint directors using ordinary resolutions, which are defined as resolutions that typically require a simple majority of the votes cast at a general meeting. This means that more than half of the votes must be in favor for the resolution to pass. Ordinary resolutions are the most common method for appointing directors, as they allow for flexibility and majority rule in decision-making, which aligns with corporate governance principles where shareholders have a say in the management of the company.

Extraordinary resolutions, while applicable in certain significant corporate actions, are not typically required for the appointment of directors and instead necessitate a higher threshold of approval, which can complicate the process. Secret resolutions, often concerning confidential matters, are not standard for appointing directors because transparency is a key element in shareholder decisions. Lastly, unanimous resolutions, which require every shareholder's agreement, can be impractical in larger companies, making ordinary resolutions a more feasible and effective choice for appointing directors.

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