Shareholders’ Written Ordinary Resolution to Approve a Director’s Long Term Service Agreement

Under section 188 of the Companies Act 2006, directors’ service contracts with a guaranteed term which is (or maybe) longer than 2 years must be approved by an ordinary resolution of the shareholders of the company. For private companies this can be done with a written ordinary resolution.

Use a written resolution instead of holding a general meeting

Under chapter 2 of Part 13 of the Companies Act 2006, written resolutions can be used by private companies as an alternative to calling a general meeting (to pass almost all resolutions other than to remove a director or an auditor before his term of office has expired).

For many private companies it is administratively easier to use a written resolution.

Link to the equivalent ordinary resolution wording

This written resolution uses the same wording as in the template above but for convenience it is in the format of a written resolution that private companies may use when passing the resolution.

Shareholders’ Written Ordinary Resolution to Approve a Director’s Long Term Service Agreement is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.