Distinguish between the following: Ordinary Resolution and Special Resolution
CS Professional · Drafting, Pleadings and Appearances · PYQS · June 2023
Distinguish between the following: Ordinary Resolution and Special Resolution
Answer & Explanation:
Ordinary Resolution and Special Resolution are distinguished as under: Ordinary Resolution According to section 114(1) of the Companies Act, 2013(the Act), a resolution shall be an ordinary resolution if the notice required under the Act has been duly given and it is required to be passed by the votes cast, whether on a show of hands, or electronically or on a poll, as the case may be, in favour of the resolution, including the casting vote, if any, of the Chairman, by members who, being entitled so to do, vote in person, or where proxies are allowed, by proxy or by postal ballot, exceed the votes, if any, cast against the resolution by members, so entitled and voting. Special Resolution According to section 114(2) of the Companies Act, 2013(the Act), a resolution shall be a special resolution when- (a) the intention to propose the resolution as a special resolution has been duly specified in the notice calling the general meeting or other intimation given to the members of the resolution; (b) the notice required under the Act has been duly given; and (c) the votes cast in favour of the resolution, whether on a show of hands, or electronically or on a poll, as the case may be, by members who, being entitled so to do, vote in person or by proxy or by postal ballot, are required to be not less than three times the number of the votes, if any, cast against the resolution by members so entitled and voting.
Topics: Company Law
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