RESOLUTION

A resolution is a formal expression of opinion by a meeting. It means a firm decision or opinion is formally taken  or expressed by a group of people, unanimously or by a simple majority. It is the act of ‘resolving a problem’.

A question on which a vote is to be taken is called a ‘motion’. When a motion is passed by voting at a meeting, it becomes a resolution.

An association or company conducts its business by passing resolutions at meetings. How effective the wording of a resolution is will determine whether it is clearly understood by the members and the policies implemented.

It is interesting to note that while minutes of meetings are written in the past tense, a resolution is generally in the present tense.

According to the Companies Act of 1959, resolutions can be of three kinds

Ordinary resolutions

Special resolutions

Resolutions requiring Special Notice

 

Resolutions are voted upon and passed or rejected by those attending the meeting.

A resolution is proposed by one of the members present, seconded by another member, and then voted upon after discussion.

There are different ways of wording Resolutions. A good command over the language enables the Secretary to decide on the sentence structure

Some examples of Resolutions:

It was resolved on a motion by Mr. Kamat, seconded by Mr. Shah, that Mr. Pathan be appointed Joint Treasurer of the association for the year 2022-23.

It was resolved that the premises of the Registered Office of the Company situated at Charni Road, Mumbai, be extended by building an additional floor in the existing building. Further resolved that the Company Secretary, Mr. A. S. Shah be and is authorized to secure on behalf of the company the necessary municipal permissions and to appoint a contractor for the same after negotiating the cost and terms of the job in consultation with the Board of Directors.