Page 12 - Account 10

Resolution (Prastab)

6. Introduction
An organization may face a number of difficulties
and problems in the regular course of its operation.
It should tackle them in such a way that they can be
democratically solved. Similarly, a number of plans
and policies and some additional programmes are also,
to be approved and executed in the same way. For such
all purposes, they are to be systematically presented in
a meeting or conference for discussion and decision. As
such, a resolution is written form of proposal i.e. subject
mater or topic forwarded in a meeting or conference Meeting with staff
for discussion and decision. Thus, a proposal or agenda
when forwarded in a meeting or conference for discussion and decision is known as
resolution. It is said ‘Prastab’ in Nepali, it keeps similar meaning with the word “proposal”
and “Agenda of meeting, conference” and “subject matter of meeting.”
The resolutions of a company may be related with the election of directors, appointment
of auditors, declaration of dividends, bonus, raising of funds, amendment of articles
and memorandum of association, change of name, address or capital of the company,
dissolution of the company and so forth which are presented in the general meeting of
shareholders and board of directors, etc. They are accepted by the required majority of the
concerned members participated in the discussion and decision on the resolution. When
the proposals are forwarded in the meeting, some of them may be approved, as it is, some
others after necessary amendments and become resolutions but some may be rejected or
postponed until the next meeting. When it is passed or accepted by majority, it becomes
law or rule and should be followed by all.

Key Point A resolution is a written proposal / agenda presented in the meeting by a
member for discussion and decision.

7. Objectives of Resolution

There are certain objectives of resolutions. They are mentioned below.
i. To present the case, problem or situation in a systematic and orderly manner.
ii. To solve the problems and handle the cases by mass consensus.
iii. To conduct the meeting or conference successfully.
iv. To supply the necessary information by means of the decisions approved from the
meeting.
v. To formulate the rules and regulations, laws, plans and polices in favour of the
organization.
vi. To settle the misunderstanding and disputes by using as a proof document.
vii. To help for making effective decisions.
viii. To solve the problems of organization in democratic way.

12 Aakar’s Office Practice and Accountancy - 10 Office Procedures 13