Q.23 Explain the various kinds of resolution?
Pit field has defined the resolution in the following words:
“A formal declaration at the will or wishes of the company”
In other words we can say that resolution is the desire of the members of assemble or meeting which they have shown by their votes. Resolution is drafted in the third person.
KINDS OF RESOLUTION
The simple majority of the members of the company pass this resolution in the annual general meeting. Generally this resolution is used for ordinary routine business of the company.
This notice is served to each member for 21 days.
1. To declare the dividend.
2. To verify the accounts.
3. To appoint the auditors.
4. To fix the remuneration of auditors.
5. To appoint and retire the managing agent.
6. Permission to the shares at discount.
The resolution, which is passed by the majority of the shareholders not less than 3/4, is called special resolution. A copy of special resolution must be flied with the registrar’s office within fifteen days.
1. To transfer the registered office from one province to other.
2. To determine the remuneration of any director.
3. To change the articles of association.
4. To change the memorandum of the company.
5. To change the name of the company.
6. To re-organize the share capital of the company.
7. To investigate the company affairs.
8. To initiate winding up by the court.
9. To turn private company into public company.
10. To reduce the share capital.
11. To depart the managing agents due to their carelessness.
12. To create reserve liability.
3. EXTRA ORDINARY RESOLUTION
A resolution, which is passed by the majority not less than 3/4 of the shareholders who are entitled to vote, it is called extra ordinary resolution. The copy of this resolution must be submitted within 15 days to the registrar.
For this resolution 14 days notice must by served to the members. Members should be informed that which type of resolution would be presented.
1. To wind up the company voluntarily due to heavy liability.
2. To remove directors.
3. For settlement between company and editors.
Different types of meetings of Joint Stock Company Next Post:
Winding up or liquidation of Joint stock company