[amp_mcq option1=”A resolution of Board of Directors” option2=”An ordinary resolution in Annual General Meeting of the Shareholders” option3=”A special Resolution” option4=”Obtaining permission of the Company Law Board” correct=”option3″]
The correct answer is: C. A special resolution.
An ordinary resolution is a resolution passed by a simple majority of the votes cast at a meeting. A special resolution is a resolution passed by a majority of not less than three-fourths of the votes cast at a meeting.
The articles of association are the rules that govern the internal affairs of a company. They are a contract between the company and its shareholders. The articles of association can be altered by a special resolution of the shareholders. This means that a majority of not less than three-fourths of the votes cast at a meeting must be in favour of the alteration.
The board of directors cannot alter the articles of association without the approval of the shareholders. The Company Law Board is a government body that regulates companies. It does not have the power to alter the articles of association of a company.
Here is a brief explanation of each option:
- A resolution of Board of Directors: The board of directors is the executive body of a company. It is responsible for the day-to-day management of the company. The board of directors can make decisions on behalf of the company, but it cannot alter the articles of association.
- An ordinary resolution in Annual General Meeting of the Shareholders: An ordinary resolution is a resolution passed by a simple majority of the votes cast at a meeting. The annual general meeting is a meeting of the shareholders of a company that is held once a year. At the annual general meeting, the shareholders can vote on resolutions that are proposed by the board of directors.
- A special Resolution: A special resolution is a resolution passed by a majority of not less than three-fourths of the votes cast at a meeting. A special resolution is required to alter the articles of association of a company.
- Obtaining permission of the Company Law Board: The Company Law Board is a government body that regulates companies. It does not have the power to alter the articles of association of a company.