elective resolution

elective resolution
A form of resolution for private companies introduced by the Companies Act (1989). It can be passed by the members in general meeting, if at least 21 days' notice in writing has been given, providing the terms of the resolution, and it is passed by all members entitled to attend and vote, whether in person or by proxy. A copy of the resolution must be filed at Companies House; its effect ceases if the company is re-registered as a public company. An ordinary resolution can be passed to revoke an elective resolution and such a resolution must also be filed at Companies House. An elective resolution may be used in five specified situations concerning:
(1) the directors' authority to allot shares;
(2) dispensing with the laying of accounts in a general meeting;
(3) dispensing with the annual general meeting;
(4) the appointment of auditors;
(5) the holding of extraordinary general meetings.

Accounting dictionary. 2014.

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