special (adjective, spe-cial, \ ˈspeʃəl \) resolution (noun, res-o-lu-tion, \ ˌrezəˈluːʃən \)
Definition: is a resolution (also called extraordinary resolution), which is made regarding a crucial business decision and requires no less than 75% of the votes cast in favor (by the shareholders) in order for it to pass. A special resolution has to meet a few necessary demands in order to come into effect, such as a 21-day notice with the intention to propose a specific resolution sent to the members, at least ¾ of the votes of the present members, and to be filled within the first 15 days of approval by the qualified authority. Special resolutions are typically proposed when dealing with the essential parts of a business and its processes, for instance, changing the company name, changing the type of the company (from private to public, for example), or altering the company’s articles of association and their terms.
In a Sentence:
- A special resolution, despite having a couple of specific requirements, can help us with the decision-making process.
- By proposing a special resolution, we will ensure that all of the important decisions will be considered with utter attention and interest.
- You can’t change your limited company into an unlimited one without proposing a special resolution.
Synonyms and related words: extraordinary resolution, ordinary resolution, written resolution, resolution to borrow, conflict resolution, alternative resolution, resolution