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LSDefine
Simple English definitions for legal terms
shareholder resolution
Read a random definition: extra judicium
A quick definition of shareholder resolution:
A shareholder resolution is a formal decision made by the shareholders of a company. It usually involves approving or disapproving the actions of the board of directors. Shareholders are the owners of the company, so their opinions matter. A shareholder resolution can also authorize a specific action or appointment. It is like a vote that helps the company make important decisions.
A more thorough explanation:
A shareholder resolution is a formal action taken by a corporate board of directors or other corporate body authorizing a particular act, transaction, or appointment. It is a document containing such an expression or authorization.
For example, shareholders may pass a resolution to ratify the actions of the board of directors. This means that the shareholders formally approve of the decisions made by the board of directors on behalf of the company.
Another example is a joint resolution, which is a legislative resolution passed by both houses of a legislature. It has the force of law and is subject to executive veto.
These examples illustrate how a shareholder resolution is a formal way for shareholders to express their opinions and make decisions about the actions of a company.