Resolution - Meaning

resolution

  

Definitions (4)

1. Formal authorization or expression of an action, decision, intention, opinion, transaction, etc.

2. Proposition put before a meeting of stockholders (shareholders) or the directors of a firm for discussion, approval or adoption. Resolutions are of four common types: (1) Elective (see elective resolution), (2) Extraordinary (see extraordinary resolution), (3) Ordinary (see ordinary resolution), and (4) Special (see special resolution).

3. Appropriate disposition of a complaint or protest through prescribed or standard procedures.

4. Sharpness or clarity of a monitor, printer, or scanner image, expressed in an appropriate unit: pixels per inch (PPI) for monitors, dots per inch (DPI) for printers, and samples per inch (SPI) for scanners. For photographic systems, it is expressed as lines per millimeter (LPM).

elective resolution

  

Definition

Special resolution that requires the unanimous agreement of the stockholders (shareholders) of a firm. Elective resolutions are moved usually at annual general meetings (AGM).

extraordinary resolution

  

Definition

Company resolution that usually does not require any notice of its proposal, but must be passed by a majority of at least three quarters (two-thirds in some jurisdictions) of the votes cast. It is called a special resolution if a prior notice (usually of 21 days) is required for its proposal.

ordinary resolution

  

Definition

Company resolution that is not extraordinary, elective, or special resolution, such as that for approval of accounts. Ordinary resolutions require only ordinary or simple majority (over half of the votes of shareholders or of their proxies) to be adopted or passed, and may not require any notice of their proposal.

special resolution

  

Definition

Extraordinary resolution regarding an important decision, such as for altering the terms of the articles of association or the memorandum of association, or making some other major or fundamental changes in an organization. A special resolution typically requires (1) not less than 21 days notice to the members of the intention to propose the resolution, (2) not less than three-fourth of the votes of the members present in person or by proxy for approval, and (3) to be filed with the competent authority (such as the registrar of companies in the UK), within 15 days of being approved.