What type of resolution is generally needed for changes affecting the rights of shareholders?

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!

Changes affecting the rights of shareholders usually require a special resolution. This type of resolution is necessary because it involves significant alterations that may impact the shareholders' rights, such as amendments to the company’s articles of association or changes in share capital.

A special resolution generally requires a higher threshold of approval, typically at least 75% of the votes cast at a general meeting. This heightened requirement reflects the importance of protecting shareholder rights and ensuring that any substantial changes receive a strong mandate from the shareholders.

In contrast, an ordinary resolution, which requires a simple majority, is adequate for routine business decisions but not for more impactful changes. Majority and unanimous resolutions typically refer to different contexts or thresholds for decision-making, but they do not specifically apply to the rights of shareholders in the same way that a special resolution does.

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