NGOs are playing an important role in the development of Nation. Resolution is very important part of the functioning of NGOs. For example, when NGO has to open a bank account then bank demand the copy of resolution. Most people are confused about resolution. They do not know about it. It is not a very difficult concept. This article will explain you the concept of resolution in a very simple manner.
The Governing Body of an organisations takes decisions by passing resolutions at the Governing Body/General Body Meetings. The Governing Body makes a proposal, also known as motion and places before the Governing Body/General Body. If a proposal is approved by majority, it is adopted as resolution. If the proposal is disapproved it is adopted.
Voting
A proposal/motion is discussed at the meeting and put to vote either by show of hands or by poll. If it is favoured by the requisite majority, it is converted into a resolution.
Casting Vote
In case of equality of votes, the Chairman can exercise a second or casting vote, if the provided in articles/rules and regulations.
Drafting of Resolutions
The following factor should be born in mind while drafting a resolution:
- Clarity, unambiguity and unequivocally.
- Inclusion of essential facts
- Brevity
- Separate resolution for separate subject matters
- Legal provision compliance
- Compliance with provisions of articles/rules and regulations
- Logical sequence
- Govt. approvals, if any, should be specified
- Formally worded
- Careful reference to time
Specimen Resolutions
Specimens of some of the commonly required resolutions are given below:
Resolutions of First Meeting
1. Appointment of Chairman
Resolved unanimously that Mr………… be appointed as the Chairman (or any other name) of the society for a period of……….years. The Governing Body places its confidence in him and hopes that he will act as well as guide the society for achievement of its objects.
2. Appointment of Other Office Bearers
Resolved unanimously that Mr………….will be the Vice Chairman, Mr……………………. will be the Treasurer and Mr……………will be the Secretary of the society.
Further resolved that posts of office bearers of the society will be honorary(or paid if decided) and the Secretary will be a full time employee of the Society and will be paid a monthly consolidated salary of Rs…………… Terms of all the office bearers will be……………………..years.
3. Opening and operation of Bank Account
Resolved unanimously that a current account of the society may be opened with……………….Bank and the Secretary is directed to complete the formalities of the opening of the Bank Account. Mr………………. and Mr………………………are authorised to operate the said account jointly.
4. Application of Society Funds/Properties
Resolved unanimously that the funds and properties stated in the list (initialled by the Chairman for identification) may be vested in the members of the governing body who will act as trustees and the properties be applied as best as possible for achieving the objectives of the society. Decisions regarding specific applications of properties will be taken by the governing body from time to time.
5. Registration for Income-tax purpose
Resolved that Mr……………..is hereby authorised to comply with all formalities for registration under the Income-tax Act and to obtain the approval/ exemption under the said Act at the earliest. He should keep the Chairman informed on the status of his efforts and seek his guidance wherever necessary. A special power of attorney may be executed in his favour by Mr…………………and Mr……………………………. for this purpose.
Resolution for Admission of a New Member
Resolved unanimously that Mr……………and Mr………………………be admitted to the membership of the society. The Secretary is hereby directed to obtain their signatures on the register of members of the society and to issue them proper receipt for membership fee. The governing body welcomes the new members.
Resolution for Suspension of Membership
Resolved unanimously that the membership of Mr…………………….be suspended for a period of two months from today and the Secretary is hereby advised to send to Mr……………. a registered notice intimating the suspension as well as asking him to explain as to why his membership should not be cancelled.
Further resolved that the Secretary should report to the governing body the reply, if any, received from Mr……………………………….for deciding further course of action.
Resolution for Expulsion of a Member
Resolved unanimously that since the whereabouts of Mr………….are not known and since he has failed to pay the subscription for last three years, the member be expelled from the society and his name be struck off the register of members of the society, subject to confirmation by the general body. Further resolved that steps may be taken to recover the subscription amount due from him to the society, and if necessary, law suit may be filed as per the regulations of the society.
Resolution of Governing Body
Resolved unanimously that the proposal for change of name placed before us for consideration is accepted with certain changes and has been initialled by the………………………… Further resolved that a special general meeting of the general body of society be convened on ………………. (date) for consideration of the proposal. The Secretary is here by directed to issue requisite notice to all members along with a printed copy of chairman for the purpose of identification.
Resolution at Special General Meeting
Resolved that the proposal adopted by the governing body is accepted in total and the name of the society be changed from…………….. (existing name) to……………(new name).
Resolution of Special Grant/Extraordinary Expenditure
Resolved unanimously that a special fund of Rs. 1,00,000 (Rupee one lakh only) be created and allocated towards providing mid-day meals to the students of Govt. schools in the locality of Darya Ganj, ChandniChowk and PaharGanj areas. The meal may consist of one sweet and one snack, should be wholesome, hygienic and not adulterated in any manner. The expenditure on meal per student should not be more than Rs. 100 per day.
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*Dr. Deepak Miglani, Email id.:- [email protected]