Key Features of Company Resolutions
Ensuring Corporate Accountability
Company resolutions provide a structured approach to business decision-making, ensuring accountability and transparency. It approves financial reports, appoints key personnel, or makes substantial business decisions, resolutions operation on behalf of the companies around governance and compliance in their operations.
Types of Company Resolutions
Ordinary Resolutions
- Approved by a simple majority (more than 50%).
- Used for routine business decisions.
- Examples: Director appointments, dividend declarations, and policy approvals.
Special Resolutions
- Require at least 75% approval from shareholders.
- Used for significant corporate changes.
- Examples: Changing the company name, amending the Articles of Incorporation, and mergers.
Written Resolutions
- Allow decision-making without holding a formal meeting.
- Must be signed by the required majority of shareholders or directors.
- Common for urgent or unanimous approvals.
Board Resolutions
- Passed by the Board of Directors to manage corporate affairs.
- Examples: Authorizing new business ventures, financial transactions, and approving contracts.
