A resolution that is passed in a general meeting at a minimum of 14 days’ notice and also agreed to by a minimum of 75% of those members who are either present themselves or are present through proxy are known as an Extraordinary Resolution. According to the Insolvency Act, 1986, an Extraordinary Resolution is required to be used in cases of winding up of the company. Apart from this, in case of a difference of the rights of a class of shares, extraordinary resolutions are also required to be passed at a separate meeting of the class concerned.
Elective Resolutions:
A resolution that is passed in a general meeting at a minimum of 21 days’ notice and also agreed to by all the shareholders who are entitled to attend and vote at the meeting in order to meet up with certain administrative provisions is known as an Elective Resolution.
