What type of resolution is necessary for voluntary liquidation if specified in the articles?

In the context of voluntary liquidation and company law, when the articles of association specify a requirement for a type of resolution, it is essential to understand the nature of the resolution needed. In many jurisdictions, a voluntary liquidation can indeed be initiated through an ordinary resolution, provided that the articles of association do not stipulate a higher threshold.

An ordinary resolution requires a simple majority of votes in favor, which reflects the company's broader consensus without necessitating unanimity or a supermajority. This ensures that the process of liquidation can move forward relatively smoothly, enabling a company to dissolve when it cannot continue operating effectively.

In contrast, a special resolution typically requires a higher threshold, often a 75% majority, and is used for more significant decisions as specified in the Companies Act or similar legislation. Options such as unanimous consent or extraordinary resolutions, which often require a defined proportion of votes or additional legal stipulations, may not apply in the context where the articles merely require an ordinary resolution for voluntary liquidation.

Therefore, if the articles do indeed specify an ordinary resolution for voluntary liquidation, this aligns with the corporate governance framework that supports effective decision-making for the company’s stakeholders.