Types of Resolution in Accordance with Company Act

We are going to discuss here types of resolution it will give a 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 discussed in detail as follows:

Types of Resolution

1. Ordinary Resolution

A resolution that is simply passed by the majority votes (not less than three-fourths) cast by the members in person or by proxy is known as an ordinary resolution. The business of ordinary nature is recorded in such a 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 with 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 a 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 the 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 is given above.

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