resolution

resolution
A binding decision made by the members of a company. If a motion is put before the members of a company at a general meeting and the required majority vote in favour of it, the motion is passed and becomes a resolution. A resolution may also be passed by unanimous informal consent of the members.
UK company law recognizes several different types of resolution, each of which has different requirements in terms of the number of days' notice given to members and the required voting majority. The type of resolution required to make a particular decision may be prescribed by the Companies Acts or by the company's articles. For example, an ordinary resolution is required to remove a director, an extraordinary resolution is required to wind up a company voluntarily, and a special resolution is required to change the company's articles of association.

Accounting dictionary. 2014.

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