Which statement best describes a written resolution in private company practice?

Which statement best describes a written resolution in private company practice?

• A. A resolution passed at a meeting with formal attendance.
• B. A shareholder method of voting for a shareholder resolution, sent to shareholders to sign instead of holding a meeting.
• C. A resolution passed by the board via written signatures.
• D. A resolution filed with Companies House.

Answer: (B)

Written resolutions in private company practice are a way for shareholders to approve a decision without holding a general meeting. The proposed resolution is circulated to all shareholders entitled to attend and vote, and they sign to indicate their approval instead of gathering in person. This method effectively achieves the same result as a vote at a meeting, but it is conducted in writing. In practice, it’s typically used for shareholder resolutions and often requires signatures from all eligible members (a unanimous written resolution) before it is considered passed. The other options describe scenarios that aren’t about this written, signature-based voting process: a meeting where people attend in person or by proxy, a decision made by the board rather than the shareholders, and a filing with Companies House, which is simply a statutory filing rather than a voting method.

Written resolutions in private company practice are a way for shareholders to approve a decision without holding a general meeting. The proposed resolution is circulated to all shareholders entitled to attend and vote, and they sign to indicate their approval instead of gathering in person. This method effectively achieves the same result as a vote at a meeting, but it is conducted in writing. In practice, it’s typically used for shareholder resolutions and often requires signatures from all eligible members (a unanimous written resolution) before it is considered passed.

The other options describe scenarios that aren’t about this written, signature-based voting process: a meeting where people attend in person or by proxy, a decision made by the board rather than the shareholders, and a filing with Companies House, which is simply a statutory filing rather than a voting method.