Q.What is Ordinary Resolution? Mention its objectives.

An ordinary resolution is passed by a simple majority (votes 'for' exceed votes 'against') and is used for the company's ordinary/routine business.

Meaning: An ordinary resolution is a decision passed at a general meeting by a simple majority, that is, where the number of votes cast in favour of the resolution (by members present and voting, in person or by proxy) is more than the number of votes cast against it. Proper notice of the meeting must be given, and the required quorum must be present. It is the ordinary/normal form of resolution, requiring a lower level of support than a special resolution (which needs a three-fourths majority).

Objectives / matters for which an ordinary resolution is used: An ordinary resolution is passed to transact the ordinary business and other matters not specifically requiring a special resolution, such as:

• Adoption of the financial statements and the directors' and auditors' reports.
• Declaration of dividend.
• Appointment or re-appointment of directors (including those retiring by rotation) and fixing their remuneration.
• Appointment or re-appointment of auditors and fixing their remuneration.
• Removal of a director before the expiry of his term (with the prescribed procedure). …