KEY FACTS OF ORDINARY RESOLUTION

Section 81(1) of the Companies Act, 1994 provides that a resolution shall be an ordinary resolution when at a general meeting, of which the notice required under this Act has been duly given, the votes cast in favor of the resolution by members exceed the votes cast against the resolution.

Following Decisions Can Be Passed Via an Ordinary Resolution

1. Approval of the annual accounts,

2. Approval of a final or interim dividend,

3. Re-appointment and appointment of a director,

4. Reappointment of auditors,

5. Fixation of auditor’s remuneration

-Section 184(1); 91(2); 210 (1)

Voting Power Of Ordinary Resolution

The consent of at least 51% of the members must be obtained to have a valid resolution passed. Therefore, a shareholding ratio of 51% or higher means that a shareholder has the authority to make the above decision.

Right to read accounting books: All shareholders are granted the right to view accounting books. -Section 191

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