Companies Act 2014 section 989

Application of section 193 in relation to a DAC

Section 989 applies the rules on unanimous written resolutions to designated activity companies (DACs), with the added flexibility that a DAC's constitution may opt out of this facility.

• Section 193, which permits unanimous written resolutions in lieu of holding a general meeting, is extended to DACs.
• Unlike a private company limited by shares (LTD), a DAC's constitution may include a provision that prohibits the use of unanimous written resolutions.
• If the DAC's constitution is silent on the matter, unanimous written resolutions are permitted in the same way as for an LTD company.
• This gives DACs and their members the choice to rely on their constitution to restrict or allow this procedural shortcut as they see fit.