The 90% consent rule for short notice applies to which type of company?

• A. Public companies only
• B. Private companies
• C. Both private and public
• D. Nonprofit organizations

Answer: (B)

The rule is about shortening the notice for a general meeting with the consent of the members. In private companies, there is flexibility to hold a meeting on shorter notice if a very high level of agreement is reached: at least 90% of those entitled to attend and vote must consent to the shortened notice. This balance allows urgent matters to be dealt with quickly while safeguarding minority interests because it requires broad support among the members.

Public companies, by contrast, are governed by stricter statutory notice provisions to protect public shareholders, so they don’t typically rely on this 90% short-notice rule. Nonprofit organizations follow their own governance rules, not this private-company-specific provision.