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CS Executive - What is a Resolution in Company Law?

what is a resolution it is by a

resolution that a company makes

decisions and speaks but how is a

resolution made what is a resolution and

when do we call something as a

resolution to understand this we should

go back to the first step or where a

resolution is born so when there is a

meeting let us take an example and

understand this concept suppose we have

a board meeting in a board meeting there

is one mr. a

who wants tour who is proposing to

appoint mr. XYZ as an Additional

Director of the company so what should

mr. a do the first thing mr. a should do

is that he should propose how will he

propose through a motion so what we call

as motion is basically a proposal of any

particular item to be discussed or any

particular decision to be taken so in

our example mr. a is proposing a motion

to appoint XYZ as the additional

director of the company

so once the motion is proposed the

second step is for the motion to be

discussed and deliberated by all the

directors so whoever directors are

present they will tell their opinion why

this person should be appointed or

should not be appointed etc so the

deliberations will be completed after

the deliberations will be completed the

motion is put - what that is

should we appoint mr. XYZ as additional

director or not so let us say that the

majority of the directors agree for XYZ

to be appointed as the additional

director so now the motion is put to

what and the resolution is passed in

favor of the motion that is the motion

is to appoint and we have passed a

resolution in favor of the motion so

when the resolution is passed in favor

of the motion we say that the decision

is taken and it is a legally binding

decision of the company now there are

two types of resolutions ordinary

resolution and

resolution which we will discuss in our

next video