What resolution is required to appoint a liquidator?

To appoint a liquidator, the required resolution is a special resolution. This is because the appointment of a liquidator typically signifies a significant change in the company's status, moving towards winding up the business.

A special resolution is a resolution that passes with at least 75% of the votes cast by shareholders or members, which reflects the seriousness of such a decision and provides a higher threshold for approval than an ordinary resolution. In the context of company law, this heightened requirement ensures that all shareholders have a strong say in the critical decision to liquidate the company, which can significantly impact their interests.

Ordinary resolutions, which generally require a simple majority of votes, are used for more routine matters and do not reflect the gravity of appointing a liquidator. Similarly, a simple majority does not convey the same level of consensus required for such a significant corporate action. Unanimous resolutions also exceed what is typically necessary for adopting this type of measure, as not all members are required to agree for a special resolution to pass.