| Commentary

47 Votes of connected persons

| Commentary

47 Votes of connected persons

A resolution is invalid if those voting against it are more than 50% of those entitled to vote who, to the best of the chairman’s belief, are not persons connected with the company1. The intent of this rule is that where, as frequently happens in closely controlled companies, the directors and their immediate families are substantial loan creditors, their votes shall not carry a proposal if more than half of the unconnected creditors vote against it. This rule cannot be circumvented by the connected person assigning part of his debt to an unconnected

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