Types of Resolution in Accordance with Company Act

We are going to discuss here types of resolution it will give clear concept about resolution. In accordance with the company Act 1994 enforceable in Bangladesh, the resolution of a meeting can be divided into three groups. They are Ordinary resolution special resolution and extraordinary resolution. They are discuss detailed as follows

Types of Resolution

  1. Ordinary Resolution: A resolution which is simply passed by the majority votes (not less than three-fourths) cast by the members in person or by proxy is known as ordinary resolution. The business of ordinary nature is recorded in such resolution.
  2. Special Resolution: A special resolution is that which records the decision of the meeting transacting some special business and which is passed by the majority of the members (not less than three-fourths).
  3. Extra-Ordinary Resolution: The resolution which is passed in a meeting at the consent of three-fourths of the participating members with a view to serving emergency purposes is called extra-ordinary resolution. The members must be communicated through notice before 14 days of holding a meeting to adopt such resolution and the extraordinary resolution must be explicitly mentioned in the notice. A copy of the extraordinary resolution must be submitted to the registrar of the company within 15 days of adopting such resolution in the meeting.

Extra-ordinary resolution is necessitated to be passed for the following causes:

  1. Winding up of company at will,
  2. Dismissal of any director,
  3. Dismissal of management agent etc.
Types of Resolution in Accordance with Company Act

Types of Resolution

A flow chart of types of resolution given above.

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