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

Law for Business - Essay Example Since the two directors constitute the majority, their decision prevails. In the general meeting, the vote in favour of the motion 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 approve the proposal. The objective of this report is to outline a legitimate procedure, on behalf of Francesca, that will allow a change in the company name of Toys4U Ltd despite the objection 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 name’s use, the court or as a result of company name restoration. The company can also effect a change of its name upon its own initiative (Â § (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 effected by the company’s own initiative can be made either through a special resolution or through any other means prescribe by the company’s Articles of Incorporation (Â § (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 needs 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