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resolution

Prakhar Godre (7 Points)

01 June 2018

difference between ordinary resolution and special resolution

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Kartikey Jain (Intern) (2382 Points)
Replied 01 June 2018

An ordinary resolution means a resolution which requires a simple majority i.e. the votes in its favour should exceed the votes casted against it. Unless it is specifically mentioned in the Articles or the Companies Act for any impending proposal, passing an Ordinary resolution shall be sufficient.

A special resolution requires a majority of not less than 75% of the total votes that are casted i.e. the votes in favour should be atleast 3 times the votes casted against it. Special resolution is mandatory for any proposal only if it is specifically mentioned as a requirement in the Articles of the company or in the Companies Act.

Special Resolutions are generally required for making important decisions of the company such as altering the Articles or Memorandum or making some major changes in the company which would have a huge impact on the company and its functioning.

Sana Sultana Mussu (Student) (5119 Points)
Replied 03 June 2018

ordinary resolution is votes in favour is more than the votes against the resolution
special resolution is when votes in favour are 3 times more than votes against resolution