Ordinary and Special Resolution | Companies Act

Resolution is the formal decision of an organization while transacting a business at a meeting. Most matters come before a meeting by way of a motion recommending that the meeting may express approval or disapproval on the matter concerned. A motion which has obtained the necessary majority vote in favour becomes a resolution. There are two types of resolutions; namely, ordinary resolution and special resolution

Types of resolutions [Section 114]
(1) Ordinary resolution
A resolution shall be an ordinary resolution if
the notice required under this Act has been duly given and
the votes cast (by show of hands, electronically or on a poll) in favour,
exceeds the votes, if any, cast against the resolution by the members, so entitled and voting.


(2) Special resolution
A resolution shall be special resolution when
the intention to propose the resolution as a special resolution has been duly specified in the notice calling the general meeting or other intimation given to the members of the resolution
The notice required under this Act has been duly given (ie Proper notice of 21 days is given for holding the meeting)
the votes cast in favour (by show of hands, electronically or on a poll) are three times (75%) the votes cast against the resolution


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