Extraordinary resolution

An extraordinary resolution (referred to in some countries as a special resolution[1]) is a resolution passed by the shareholders of a company by a greater majority than is required to pass an ordinary resolution. The precise figures vary in different countries, but commonly an extraordinary resolution must be affirmed by not less than 75% of members casting votes, whereas an ordinary resolution only requires a bare majority.

Extraordinary resolution are generally only required is certain specific situations required by stature. For example, in the United Kingdom, to wind up a company voluntarily on the ground that it cannot by reason of its insolvency continue its business, requires an extraordinary resolution.

However, in certain circumstancs a company may wish to amend its constitutional documents to provide that an extraordinary resolution needs to be passed prior to the company engaging in any "reserved matters", purely as a matter of internal organisational control.