Professional Legal Training Course (PLTC) Company Law Practice Exam

A resolution that necessitates consent from all shareholders entitled to vote is referred to as a unanimous resolution. This means that every voting shareholder must agree on the resolution for it to be valid and effective, reflecting a complete consensus among all shareholders on specific matters.

In corporate governance, this type of resolution is often required for significant decisions that can fundamentally alter the structure or operations of a corporation. Examples may include mergers, amendments to the articles of incorporation, or other major corporate actions. The requirement for unanimous consent ensures that all shareholders have a say in these crucial decisions, thereby protecting minority interests and promoting a strong sense of collective agreement.

Other types of resolutions, such as ordinary and special resolutions, do not require the agreement of all shareholders. An ordinary resolution typically requires a simple majority of those present and voting at a meeting, while a special resolution usually needs a higher threshold, such as a two-thirds or three-quarters majority, but does not mandate unanimous consent. Exceptional resolution is not a standard term in company law, making unanimous resolution the most accurate choice that fits the criteria outlined in the question.