Ordinary Resolution
A shareholder resolution requiring a simple majority of votes cast in favour to pass.
Formula
Test: votes in favour exceed votes against among members voting, in person, by proxy or electronically
Unit
%
In depth
Ordinary resolutions cover routine business: adopting accounts, declaring a final dividend, appointing directors and auditors, and approving ordinary-course matters. The threshold is a simple majority of votes cast, not of shares outstanding, so abstentions do not count against. In a company where a promoter holds a majority, ordinary resolutions pass regardless of minority views, which is why the resolutions that matter to minority holders are those requiring a special resolution or a majority of the minority. Knowing which threshold applies tells you whether your vote can affect the outcome.
Worked example
A resolution receives 62% in favour, 22% against and 16% abstaining. It passes, because 62 exceeds 22 among votes cast — the abstentions are simply not counted either way.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Ordinary Resolution” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.