Meaning of Resolution
Resolution may be defined as the formal decision of a meeting on any motion placed in the meeting. It is a formal way in which a company can note decisions that are made at a meeting of company members. In other words, when a motion is passed, it is called resolution. Resolution is the decided conclusion of a motion in any meeting. It is the formal authorization or expression of an action, decision, intention, opinion, transaction, etc. The corporate resolution will be found in the board minutes detailing decisions made by the board during the meeting.
In the meetings, different motions may be moved, discussed, amended, seconded, and voted. When a motion is passed and accepted by the members, it becomes resolution. The ultimate aim of a meeting is to adopt resolutions. The Companies Act generally recognizes three kinds of resolutions. These are:
- Ordinary Resolution;
- Special Resolution; and
- Extra-ordinary Resolution.