{"id":56376,"date":"2021-06-16T13:45:50","date_gmt":"2021-06-16T05:45:50","guid":{"rendered":"https:\/\/zegal.com\/run-your-back-office\/"},"modified":"2025-01-22T12:47:14","modified_gmt":"2025-01-22T04:47:14","slug":"communicate-with-shareholders","status":"publish","type":"page","link":"https:\/\/zegal.com\/en-gb\/use-case\/communicate-with-shareholders\/","title":{"rendered":"Communicate with shareholders"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zegal.com\/en-gb\/use-case\/communicate-with-shareholders\/#What_are_the_steps\" >What are the steps?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zegal.com\/en-gb\/use-case\/communicate-with-shareholders\/#What_is_a_shareholders_resolution\" >What is a shareholders\u2019 resolution?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zegal.com\/en-gb\/use-case\/communicate-with-shareholders\/#How_to_do_it\" >How to do it<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zegal.com\/en-gb\/use-case\/communicate-with-shareholders\/#Step_1_Identify_the_type_of_resolution_required\" >Step 1: Identify the type of resolution required<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zegal.com\/en-gb\/use-case\/communicate-with-shareholders\/#Step_2_Draft_the_required_written_resolution\" >Step 2: Draft the required written resolution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zegal.com\/en-gb\/use-case\/communicate-with-shareholders\/#Step_3_Adopt_the_decision_as_a_shareholders_resolution\" >Step 3: Adopt the decision as a shareholders\u2019 resolution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zegal.com\/en-gb\/use-case\/communicate-with-shareholders\/#4_If_required_Update_the_relevant_government_department_or_registry\" >4. [If required] Update the relevant government department or registry<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-steps\"><span class=\"ez-toc-section\" id=\"What_are_the_steps\"><\/span>What are the steps?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_shareholders_resolution\"><\/span>What is a shareholders\u2019 resolution?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A shareholders\u2019 resolution is a formal decision of the company voted on by the shareholders, traditionally during a meeting of the shareholders or by written resolution. It is a type of company resolution; the other is a board resolution which is passed by the board of directors. Shareholders\u2019 resolutions are traditionally passed during the Annual General Meeting (AGM) or an Extraordinary General Meeting (EGM).&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_do_it\"><\/span>How to do it<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_1_Identify_the_type_of_resolution_required\"><\/span>Step 1: Identify the type of resolution required<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Company resolutions are needed whenever there is a formal decision to be made. The kind of resolution needed (whether special or ordinary), and by whom (whether the board of directors or shareholders), is determined by the companies legislation and the company constitution (sometimes called articles of association).<\/p>\n\n\n\n<p>The rule of thumb is that the board of directors can make all the decisions for the company.<br>The exceptions are the decisions which must be taken by the shareholders (as defined by the legislation or company constitution).<\/p>\n\n\n\n<p>In addition, the rule of thumb is that most decisions can be passed either by general meeting or by written resolution.<br>The exceptions are the decisions which the legislation or company constitution requires to be passed at a general meeting.<\/p>\n\n\n\n<p>An ordinary shareholders\u2019 resolution can be passed by simple majority (50%) and has minimal regulatory requirements. Examples of company decisions which usually require ordinary resolutions include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Removing a director before the end of their term of office<\/li>\n\n\n\n<li>Approving matters that would otherwise be approved at an annual general meeting<\/li>\n<\/ul>\n\n\n\n<p>A special shareholders\u2019 resolution requires reaching a voting majority threshold of eligible votes cast (generally 75%) and may have additional meeting notice and regulatory filing requirements. Examples of company decisions which usually require special resolutions include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Changes to a company\u2019s constitution or articles of association<\/li>\n\n\n\n<li>Change of company name<\/li>\n\n\n\n<li>Reduction in share capital<\/li>\n<\/ul>\n\n\n\n<p>A unanimous shareholders resolution requires 100% of the eligible votes cast.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_2_Draft_the_required_written_resolution\"><\/span>Step 2: Draft the required written resolution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is not always convenient to convene a general meeting. In this case, a company can choose to pass a resolution by written means.<\/p>\n\n\n\n<p><em>Note: if an Annual General Meeting (AGM) or Extraordinary General Meeting (EGM), i.e. a meeting of shareholders, is convened to make a company decision, the decision should be recorded in the minutes of the general meeting instead.<\/em><\/p>\n\n\n\n<p>Depending on the company decision at hand, there are a number of written resolution formats. You can use Zegal\u2019s document builder to assist you in drafting a compliant written resolution. <\/p>\n\n\n\n<p>Here are just a few of the many resolutions available on the platform:<\/p>\n\n\n\n<p><\/p>\n\n\n\n\t<section class=\"call-to-action-buttons\">\n\t\t<div class=\"zegal-container\">\n\t\t\t\t\t\t\t\t\n\t\t\t\t<div class=\"cta-buttons\">\n\n\n\t\t\t\t\t<div class=\"cta-buttons-title-button \">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h5>Need to draft one now?<\/h5>\n\t\t\t\t\t\t\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-1\" href=\"#register\" >\n\t\t\t\t\t\t\t\tShareholders\u2019 Resolution to Adopt Share Option Plan\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-2\" href=\"#register\" >\n\t\t\t\t\t\t\t\tShareholders\u2019 Resolution to Alter Articles of Association\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t<section class=\"call-to-action-buttons\">\n\t\t<div class=\"zegal-container\">\n\t\t\t\t\t\t\t\t\n\t\t\t\t<div class=\"cta-buttons\">\n\n\n\t\t\t\t\t<div class=\"cta-buttons-title-button \">\n\n\t\t\t\t\t\t\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-1\" href=\"#register\" >\n\t\t\t\t\t\t\t\tShareholders\u2019 Resolution to Change Company Name\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-2\" href=\"#register\" >\n\t\t\t\t\t\t\t\tShareholders\u2019 Resolution to Issue Convertible Notes\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t<section class=\"call-to-action-buttons\">\n\t\t<div class=\"zegal-container\">\n\t\t\t\t\t\t\t\t\n\t\t\t\t<div class=\"cta-buttons\">\n\n\n\t\t\t\t\t<div class=\"cta-buttons-title-button \">\n\n\t\t\t\t\t\t\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-1\" href=\"#register\" >\n\t\t\t\t\t\t\t\tShareholders\u2019 Resolution to Issue Shares\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-2\" href=\"#register\" >\n\t\t\t\t\t\t\t\tShareholders\u2019 Resolution to Remove Need for an Annual General Meeting (AGM)\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_3_Adopt_the_decision_as_a_shareholders_resolution\"><\/span>Step 3: Adopt the decision as a shareholders\u2019 resolution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In order to validate the decision, the shareholders resolution will need to be adopted by the required number of shareholders (as defined by the type of the resolution and regulation, such as ordinary, special, or unanimous).<\/p>\n\n\n\n<p>In order to adopt the resolution, shareholders traditionally sign the written resolution or agree to it in writing. It is convenient to make use of e-signing where possible for this purpose. Zegal\u2019s built-in e-signing makes this a seamless process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_If_required_Update_the_relevant_government_department_or_registry\"><\/span>4. [If required] Update the relevant government department or registry<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Some company decisions, whether taken during a general meeting or by written resolution, require appropriate filing with the government department or registry.<\/p>\n\n\n\n<p>In these cases, there will usually be a deadline following the adoption of the resolution by which the necessary documentation will need to be submitted.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are the steps? What is a shareholders\u2019 resolution? A shareholders\u2019 resolution is a formal decision of the company voted on by the shareholders, traditionally during a meeting of the shareholders or by written resolution. It is a type of company resolution; the other is a board resolution which is passed by the board of [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":0,"parent":55262,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":[14138],"meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"usecases":[],"class_list":["post-56376","page","type-page","status-publish","hentry","template-company-shares"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Communicate with shareholders | Zegal UK<\/title>\n<meta name=\"description\" content=\"What are the steps? What is a shareholders\u2019 resolution? 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