Law for Business Essay Example | Topics and Well Written Essays - 1000 words

Law for Business - Essay ExampleSince the two directors constitute the majority, their decision prevails. In the general meeting, the vote in favour of the operation must at least be 75% for the motion to pass, since this is the required majority to pass a special resolution. Another way of passing a special resolution is to directly circulate the motion in writing without calling for a meeting and have the same percentage of voting rights revere the proposal.The objective of this radical is to outline a legitimate procedure, on behalf of Francesca, that will allow a change in the conjunction name of Toys4U Ltd despite the dissent of one of the three directors to the proposal.According to the Companies Act 2006, a company may change its name in compliance to an extraneous mandate such as one coming from the Secretary of State, an adjudicator upholding a protest on the company names use, the court or as a result of company name restoration. The company can also effect a change o f its name upon its own initiative ( (1) & (2), s 78, Companies Act 2006). It is the latter that is the concern of this report since it is the directors who are interested in pursuing a company name change. According to the relevant provision of law, a change of company name complete by the companys own initiative can be made either done a special resolution or through any other means prescribe by the companys Articles of Incorporation ( (1)(a) & (b), Companies Act 2006).Under the British company law, there are two ways by which a company decides an ordinary resolution, or an extraordinary or special resolution. The two types of resolutions are distinguished from each other by the number of votes required to pass them. Whilst an ordinary resolution requires only a majority vote to be passed, an extraordinary or special resolution demand at least 75% of the votes cast by members (van Gerven & Storm 2006 468). Since the law mandated a special resolution to effect a change of a