Elective Resolutions
Elective resolutions allow the company to simplify the procedures for certain statutory requirements.
Examples are the appointment of company auditors. An elective resolution can be passed so that the auditors are automatically appointed until further notice.
The primary purpose of elective resolutions is to simplify the running of a company in terms of the number of meetings and the resolutions which it has to pass.
By passing one such resolution, time an be saved by not having to pass repetitive motions each year. It is only when a change is required that a new motion is required.
Such resolutions are more common in smaller companies because the likelihood of changes in the way the company is run and the making of certain appointments (for example, auditors appointments) is less likely to change.