Ordinary Resolution: An Explanation

Ordinary ResolutionAn ordinary resolution is a formal decision-making process commonly used in corporate meetings and governance. It is a fundamental tool for businesses in Hong Kong to address a wide range of matters in a straightforward and democratic manner.

 

Key Features of an Ordinary Resolution

An ordinary resolution typically requires a simple majority vote, where more than 50% of the shareholders or members present and voting must support the resolution for it to pass. This makes it a widely applicable method for making decisions on various company matters, such as appointing directors, approving financial statements, or changing company policies.

 

When to Use an Ordinary Resolution

Ordinary resolutions are suitable for routine company matters that do not necessitate a higher level of approval, such as amending the company’s articles of association or declaring dividends. These resolutions provide a fair and efficient way to make decisions that affect the company’s day-to-day operations.

 

Documenting and Implementing an Ordinary Resolution

Once passed, the ordinary resolution is documented in the meeting minutes, signed by the chairman, and filed as part of the company’s official records. It then becomes a binding decision, and the company must take the necessary actions to implement it.

 

Conclusion

In Hong Kong, an ordinary resolution is a fundamental tool for corporate decision-making, offering a straightforward and democratic process to address various company matters. Understanding when and how to use ordinary resolutions is essential for businesses to ensure effective governance and compliance with legal requirements.