RESOLUTIONS

A resolution may be defined as the decision of a meeting on any proposal placed before it. It is a formal expression of opinion by a group a meeting. When an opinion or suggestion is adopted by the meeting and a decision is taken on the matter, it is recorded as a ‘Resolution’ for taking action. Resolution is commonly referred to as ‘Motion’. A resolution or motion is proposed by one member and seconded by another and then voted upon after discussion. A motion which cannot be seconded is dropped.  

There are two types of Resolutions:

1)      Ordinary Resolution- An ordinary resolution is one passed at an annual general meeting. Ordinary resolutions deal with such business as appointment and removal of auditors, increasing or reducing number of directors, borrowing money, investing in shares of another company, etc.

2)      Special Resolution- A special resolution is a motion or proposal that requires approval of at least 75% of members’ votes. Special resolutions are used in matters like: changing the name of the company, altering the articles of the company, starting new business, etc.

Examples of Resolutions:

1)      Appointment of Secretary:  Resolved that Mr. Satish Patil be and is hereby appointed Secretary for the year 2017-18.

2)      Condolence Resolution: Resolved that the company expresses sorrow at the untimely demise of one of its directors, Mr. Anil Patil and places on record appreciation of his dedicated service for the organisation.