In a members voluntary winding up, what resolution is typically passed?

In a members' voluntary winding up, a special resolution is typically passed to appoint a liquidator. This is an important step as it formally initiates the winding-up process, signifying that the members of the company have decided to dissolve the business voluntarily. A special resolution requires a two-thirds majority of the votes cast by the members present at the meeting, which highlights the commitment and agreement among the members regarding the liquidation of the company.

The need for a special resolution reflects the legal requirements outlined in the Companies Act, indicating that members must formally agree to the dissolution and the selection of a liquidator. This ensures that the process is transparent and that all members have had a chance to express their views before proceeding.

In contrast, a simple resolution would not suffice for such a significant decision as it only requires a simple majority and lacks the rigorous endorsement that a special resolution provides. Additionally, while some scenarios might not require any resolution, in the case of a members' voluntary winding up, the active decision-making process necessitates the passing of a special resolution. Approval from creditors is not the primary concern in this type of winding up; rather, it centers around the members' consent.