Which statement is true about the upper limit for short notice consent threshold in private company articles?

• A. It is fixed at 90% regardless of Articles
• B. It can be up to 97% if Articles allow
• C. It must be exactly the percentage specified in the Articles, but not more than 100%
• D. Not exceeding 95% even if the Articles specify a higher percentage

Answer: (D)

The key idea is that there is a legal ceiling on how high a private company can set the threshold for short notice consent. That ceiling is 95%. Even if the company’s Articles try to push the threshold higher, it cannot exceed 95%. So the true statement is that the limit cannot go above 95%, regardless of what the Articles say.

This means any proposal to require more than 95% for short notice consent isn’t valid, even if the Articles appear to allow a higher figure. The other options conflict with this cap: 90% isn’t necessarily fixed; allowing up to 97% ignores the statutory limit; and requiring exactly the Articles’ percentage isn’t correct because the cap of 95% applies regardless of what the Articles state.