Resolution In Companies Act 2013
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FAQ
(1) A resolution shall be an ordinary resolution if the notice required under this Act has been duly given and it is required to be passed by the votes cast, whether on a show of hands, or electronically or on a poll, as the case may be, in favour of the resolution, including the casting vote, if any, of the Chairman, ...
Examples of matters that can be dealt with by an ordinary resolution include the approval of annual financial statements, the appointment of auditors, and the declaration of dividends. On the other hand, a special resolution is a resolution that requires a higher majority vote, typically 75% or more, to be passed.
Ing to Section 114 of the Companies Act, 2013, a special resolution requires the approval of not less than three-fourths (75%) of the shareholders present and voting at a general meeting.
The resolution is considered as 'passed' when the last member signs (i.e. 100% of voting members agree to pass the resolution.) The 75% threshold only applies to votes cast at a physical meeting; 100% of votes are needed to pass a resolution without a meeting.
If the motion is finally passed, it becomes a 'resolution' (because the meeting so 'resolves' or decides). A resolution, thus, is a motion which has been carried. A resolution means a formal expression of opinion or intention made, usually after voting. It is a binding decision made by the members of a company.
