How is an exceptional resolution different from a special resolution?

An exceptional resolution is characterized by a higher level of approval than a special resolution, which typically requires a minimum of 75% of votes in favor. By requiring a majority that exceeds this threshold, an exceptional resolution indicates a stronger consensus among shareholders. This feature is significant because it ensures that decisions made under an exceptional resolution reflect a more substantial agreement, which can be especially important for critical amendments or decisions within a company.

In contrast to the concept of an exceptional resolution, a special resolution is well-defined and has a set requirement of the majority of votes but does not go beyond what is required for such resolutions. Therefore, the distinction lies in the broader agreement necessary for an exceptional resolution, which reflects a commitment to uphold significant changes or decisions within the company structure.