What is a “resolution“:
The word “resolution” is not defined in our Companies Act 1994. Usually, in terms of company law, a resolution means the formal decision of a body (either the board of directors and/or shareholders) which has been taken in
a meeting after proper deliberations. In a normal scenario, any proposed action (that require prior approval) is set out before the board of directors or shareholders as agenda for their approval. After the quorum is
fulfilled, the board of directors or shareholders discuss, amend and vote such agenda. If the agenda is approved by a majority of the directors/shareholders, it becomes a resolution.
Kinds of resolutions:
Under the Companies Act 1994, (the “Act”) there are three kinds of resolutions for general meetings – i) Ordinary; ii) Special; and iii) Extraordinary resolution.
There is also resolution of board meetings. But in this post, I will only discuss resolutions of general meetings. [Read more…] about Ordinary, special and extraordinary resolution