What type of resolution is needed to appoint an auditor?

The appointment of an auditor typically requires an ordinary resolution. An ordinary resolution is a decision that can be passed by a simple majority (more than 50%) of the votes cast at a general meeting. This is the standard voting threshold for many straightforward corporate matters, including the appointment of auditors.

When appointing an auditor, the process usually involves a vote during the company’s annual general meeting (AGM), where shareholders can express their approval with a straightforward majority vote. This reflects the preference for efficiency in corporate governance, allowing standard appointments to be made without the need for more complex voting requirements that extraordinary or special resolutions would entail.

Extraordinary and special resolutions require a higher majority - usually a two-thirds or three-quarters majority, which is necessary for more significant matters affecting the company, such as amendments to articles of association or winding up. Since auditor appointments are routine tasks central to the functioning of a business, the ordinary resolution procedure is appropriate.

A general resolution is not a widely recognized term in corporate law and does not specifically pertain to the appointment of auditors, further confirming that an ordinary resolution is the correct answer.