{"id":11085,"date":"2020-06-19T16:24:53","date_gmt":"2020-06-19T10:54:53","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=11085"},"modified":"2022-09-10T14:09:32","modified_gmt":"2022-09-10T08:39:32","slug":"circulation-of-member-resolution","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/circulation-of-member-resolution\/","title":{"rendered":"Circulation of member resolution: Everything you need to know"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Circulation of\nmember resolution generally indicates the resolution authorized by the\ncirculation among the members of the board or directors. The resolutions often\npassed under the state of urgency or to avoid the requirement of assembling the\nphysical board meeting.&nbsp;<\/p>\n\n\n\n<p>Alternatively, the board members can play the same role in this regard. Those members who have a right to call an AGM can intervene into a company\u2019s matters and send the notice before the 6 weeks or 14 days of AGM, depending on the type of resolution they want to propose. Once the company gets intimate with its members, a resolution must be circulated among all the members in the form of a draft.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/circulation-of-member-resolution\/#The_concept_behind_the_circulation_of_member_resolution\" >The concept behind the circulation of member resolution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/circulation-of-member-resolution\/#Draft_of_Circulation_of_member_resolution\" >Draft of Circulation of member resolution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/circulation-of-member-resolution\/#Format_for_Acceptance_Rejection\" >Format for Acceptance\/ Rejection&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/circulation-of-member-resolution\/#Circulation_of_member_resolution_under_section_111_Company_act_2013\" >Circulation of member resolution under section 111 Company\nact 2013&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/circulation-of-member-resolution\/#Authority_engaged_in_the_circulation_of_member_resolution\" >Authority engaged in the circulation of member resolution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/circulation-of-member-resolution\/#Records_Maintaining_related_to_circular_of_member_resolution\" >Records Maintaining related to circular of member\nresolution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/circulation-of-member-resolution\/#Annexures\" >Annexures:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/circulation-of-member-resolution\/#Approval\" >Approval:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/circulation-of-member-resolution\/#Keys_provisions_of_circular_of_member_resolution\" >Keys provisions of circular of member resolution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/circulation-of-member-resolution\/#Necessary_Papers_for_circular_of_member_resolution\" >Necessary Papers for circular of member resolution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/circulation-of-member-resolution\/#Lets_quickly_summarise_what_we_have_learned_so_far\" >Let&#8217;s quickly summarise what we have learned so far.&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/corpbiz.io\/learning\/circulation-of-member-resolution\/#Wrapping_Up\" >Wrapping Up<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_concept_behind_the_circulation_of_member_resolution\"><\/span>The concept behind the circulation of member resolution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Generally, the\nDirectors and the board officials of the company prepare the agenda of the\nmeeting. The agenda further compiled and prepared in the form of a draft which\nneeds to be sent to all the appropriate members of the boards. A member, by\nhimself, has a minimal role to play in this regard.&nbsp;<\/p>\n\n\n\n<p>However, some provisions under the Companies Act enable the members to introduce motions at a meeting and inform the other officials about the commencement of the meeting.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"565\" height=\"336\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-126.png\" alt=\"circulation of member resolution\" class=\"wp-image-11093\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-126.png 565w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-126-300x178.png 300w\" sizes=\"(max-width: 565px) 100vw, 565px\" \/><\/figure><\/div>\n\n\n\n<p>If members possess\none-twentieth of all board members&#8217; total voting rights, they have the right to\ncast a vote or if 100 members have held paid-up capital of Rs1,00,000 or more,\nthe company must:<\/p>\n\n\n\n<p>1. Sent notice to all the members of the next<a href=\"https:\/\/corpbiz.io\/learning\/annual-general-meeting\/\"><strong> annual general meeting<\/strong><\/a>.&nbsp;<\/p>\n\n\n\n<p>&nbsp;2. Circulate\nthe notice of the general meeting among the members, not more than 1000 words\nillustrating the matters in regards to proposed resolutions to be dealt with at\nthat AGM.&nbsp;<\/p>\n\n\n\n<p>Some obligations need to be followed after the <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>company registration<\/strong><\/a> by the company (as per company act 2013) concerning the circulation of member resolution. Like, confronting board members and top officials before making an important decision. Likewise, the board members are equally responsible for being a part of such a process and should follow the provisions to avoid any sort of dissolutions.&nbsp;<\/p>\n\n\n\n<p>Any deviation from these provisions could lead to dissolutions of the resolution and may result in a fresh start.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Draft_of_Circulation_of_member_resolution\"><\/span>Draft of Circulation of member resolution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To,&nbsp;<\/p>\n\n\n\n<p>Name of the Director<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  Date of Circulation\n  <\/td><td><\/td><\/tr><tr><td>\n  Subject\n  <\/td><td><\/td><\/tr><tr><td>\n  Number of items needs to be addressed\n  <\/td><td><\/td><\/tr><tr><td>\n  Circulation number&nbsp;\n  <\/td><td><\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Format_for_Acceptance_Rejection\"><\/span>Format for Acceptance\/ Rejection&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>I hereby convey my decision to the above resolution as follows:-<\/p>\n\n\n\n<p>Name of the Director:&nbsp;<\/p>\n\n\n\n<p>DIN:<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  Item no.\n  <\/td><td>\n  Assent\n  <\/td><td>\n  Dissent\n  <\/td><td>\n  Sign of the official\n  <\/td><td>\n  Date\n  <\/td><td>\n  Remarks\n  <\/td><\/tr><tr><td>\n  <br>\n  <br>\n  <br>\n  <br>\n  \n  <\/td><td><\/td><td><\/td><td><\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Circulation_of_member_resolution_under_section_111_Company_act_2013\"><\/span>Circulation of member resolution under section 111 Company\nact 2013&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>As per section 100, the company shall demand the number of members in writing.<\/li><\/ul>\n\n\n\n<p>(a) Providing\nnotice to members who are likely to attend the meeting; and<\/p>\n\n\n\n<p>(b) Circulate\nstatements to members regarding matters referred to in the proposed resolution.&nbsp;<\/p>\n\n\n\n<ul><li> A company shall not circulate any statement unless\u2014<\/li><\/ul>\n\n\n\n<p>(a) A copy of the\nrequest ought to consolidate all the requisitionists&#8217; signatures, deposited at\nthe company&#8217;s registered office.&nbsp;<\/p>\n\n\n\n<p>(i) The circulation\nof the notice of a resolution should be done about six weeks before the\nmeeting.<\/p>\n\n\n\n<p>(ii) in the event\nof other requisition this time frame should be less than two weeks before the\nmeeting; and<\/p>\n\n\n\n<p>(b) there is a\ndeposit with the requisition; a sum caters to meet the company&#8217;s expenses in\ngiving effect thereto:<\/p>\n\n\n\n<p>Provided that if,\nafter a copy of a requisition has been deposited at the company&#8217;s registered\noffice, an annual general meeting is called on a date within six weeks.&nbsp;<\/p>\n\n\n\n<ul><li>The circulation of any statement must conduct as per clause (b) of sub-section (1) if, on the application, either any other person or of the company who claims to be aggrieved, Central Government declares that the rights in this section are being abused to secure needless publicity.<\/li><\/ul>\n\n\n\n<ul><li>An order cover in sub-section (3) may link with the cost incurred by the company shall be paid by the requisitionists to the company,&nbsp;<\/li><\/ul>\n\n\n\n<ul><li>The penalty of twenty-five thousand rupees imposed on the company and its officials in case of any error.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Authority_engaged_in_the_circulation_of_member_resolution\"><\/span>Authority engaged in the circulation of member resolution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> The chairman or in his absence, the top official of the company, are entitled to take decisive action whether the aid of resolution by circulation will obtain the approval of the board regarding the specific business.&nbsp; <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/corporate-social-responsibility\/\">\nWhat is Corporate Social Responsibility? \u2013 An Overview\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Records_Maintaining_related_to_circular_of_member_resolution\"><\/span>Records Maintaining related to circular of member\nresolution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> The company is liable to maintain the draft and its associate documents for at least three years from the meeting date. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Annexures\"><\/span>Annexures:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Notice and agenda\ndon&#8217;t play a crucial role in the context of resolution by circulation. However,\nnecessary papers could send along with the draft provided they explain the\npurpose of notice in brief.&nbsp;<\/p>\n\n\n\n<p>It would be\nadvisable to provide a brief explanation of why approval is sought by\ncirculation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Time of response:<\/h3>\n\n\n\n<p>A time frame of 7\ndays shall be given to the directors once the draft delivers to them. Based on\nurgency or necessity, the organization may permit directors to react in this\ntime frame.&nbsp;<\/p>\n\n\n\n<p>Resolutions:<strong><\/strong><\/p>\n\n\n\n<p>Here&#8217;s the list of\nmatters that can&#8217;t be passed by the circulation<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Typical Business Items<\/h3>\n\n\n\n<ul><li>Writing Minutes of Meetings of the Audit Committee and other Committees.<\/li><li>Approving board report and the financial statements.&nbsp;<\/li><li>The Compliance Certificate that ensures the agreement with the terms of all the laws required to run the company legally.&nbsp;<\/li><li>The list of laws encompasses the legal framework of the organization.<\/li><li>Appointment of Internal and Secretarial Auditors.&nbsp;<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"641\" height=\"365\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-127.png\" alt=\"Company's matters that cannot be resolved by circulation\" class=\"wp-image-11096\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-127.png 641w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-127-300x171.png 300w\" sizes=\"(max-width: 641px) 100vw, 641px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Specific Items<\/h3>\n\n\n\n<ul><li>Borrowing money by the issue of debentures.<\/li><li>Investment funds.<\/li><li>Granting loans or providing security regarding loans.&nbsp;<\/li><li>Making contributions in the field of politics.&nbsp;<\/li><li>Contacting shareholders regarding the money unpaid on their shares.<\/li><li>Approving Remuneration of Managers, Director, and Managing Director.&nbsp;<\/li><li>Appointment or Removal of the top company&#8217;s officials.&nbsp;<\/li><li>Selection of a candidate for the post of Manager \/ Managing Director in more than one company.<\/li><li>In a public company, the selection of Director (s) subject to the provisions mentioned in the Articles of the company.<\/li><li>Sales of subsidiaries&nbsp;&nbsp;<\/li><li>Sale and purchase of tangible\/intangible assets, not in the context of the business.<\/li><li>Obtaining payment approval from the Director for loss of office.<\/li><li>Items received by the decisive action of the Independent directors.&nbsp; <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Corporate Actions<\/h3>\n\n\n\n<ul><li>Investment in securities<\/li><li>Issue of securities, debenture in or outside India.<\/li><li>Approving permission for merger, amalgamation or reconstruction.<\/li><li>Diversify the company&#8217;s footprint for extending its production capabilities or product portfolio.&nbsp;<\/li><li>Taking complete acquisition of another company.&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Additional list of items related to listed companies:<\/h3>\n\n\n\n<ul><li>Preparing <a href=\"https:\/\/corpbiz.io\/learning\/minutes-of-meeting-crucial-for-the-organisations-success\/\"><strong>Minutes of Meetings<\/strong><\/a> for the unlisted subsidiary.<\/li><li>Financial figures for the listed company,  regardless of the time frame in which they have obtained.&nbsp;<\/li><li>Recruitment of the candidates for the managerial or senior position.&nbsp;<\/li><li>Company action towards the share transfer agent\/ the new share transfer agent in compliance with the Board action.&nbsp;<\/li><li>Statement of all significant transactions pursued by the unlisted subsidiary.<\/li><li>Approval regarding operating plans and budgets.<\/li><li>Critical Managerial Personnel payment information.&nbsp;<\/li><li>The occurrence of non-payment that exists due to the unlawful selling of goods by the company or its officials.&nbsp;<\/li><li>Any issue which takes public or product liability into the account, including orders which may have diminished the company&#8217;s identity.&nbsp;<\/li><li>Details of collaboration agreement or info regarding the joint venture.<\/li><li>The transaction of payment towards goodwill, intellectual property, or brand equity.&nbsp;<\/li><li>Labour and staff problems and their suggested resolutions.<\/li><li>Foreign exchange exposures details and the measures obtained by the management to limit the risks of unfavourable exchange rate movement.<\/li><li>Non-compliance of shareholder services such as payment error of dividend, delay in share transfer, etc.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Approval\"><\/span>Approval:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>No resolution&nbsp;<\/strong><\/p>\n\n\n\n<p>No resolution shall\nbe assumed authorized by a committee unless the resolution circulated in the\nform of the draft along with vital documents. The circulation shall be shared\namong the directors at their registered address via courier or typical post\nservices. The electronic medium can also be used for this purpose.&nbsp;<\/p>\n\n\n\n<p>The time frame also\nplays a crucial role in the approval of the resolution. If the approval process\nfails to complete before the due date, it will be considered of no value.&nbsp;<\/p>\n\n\n\n<p>Having said that, a\nminimum of one-third of directors required for the approval process at a\nmeeting. The resolution under circulation should be decided under the guidance\nof a Chairperson along with board members.&nbsp;<\/p>\n\n\n\n<p>&#8220;Total number\nof Directors&#8221; is equivalent to the &#8220;total strength of the\nBoard&#8221;, which excludes Directors with a place that needs to be\nfilled.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Keys_provisions_of_circular_of_member_resolution\"><\/span>Keys provisions of circular of member resolution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>No organization can take advantage of Circular Resolution to secretly dissolve the holding of Minimum Number of Board Meetings.<\/li><li>Resolutions and items of business cannot be a part of the circular resolution. According to <strong>company act 2013<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/ebooks.html\"><strong>[1]<\/strong><\/a><\/sup> , section 111, such items of business can only pass at duly convened Board Meeting.<\/li><li>The Board or Committee can pass the circular resolution<\/li><li>The resolution shall be considered as approval only after acceptance of resolution by the Majority of Directors and resolution passed by circulation are deemed to be passed at a duly convened Meeting of the Board and have equal authority.<\/li><li>The draft resolution must be sent with necessary papers to all the Board\/ members of the committee, even if some of them don&#8217;t hold the power of voting.\u00a0<\/li><li>A Serial No. must be given to Circular Resolution so that tracking becomes easier in the future.\u00a0<\/li><li>If 1\/3rd of Directors decided that the resolution cannot be passed at a by circulation, the Chairperson should forward the resolution in the AGM.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Necessary_Papers_for_circular_of_member_resolution\"><\/span>Necessary Papers for circular of member resolution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Each business to be\npassed via resolution by circulation shall be explained by documents\nimplicating:<\/p>\n\n\n\n<ul><li>A brief explanation of the proposal.&nbsp;<\/li><li>Relevant material facts letting Directors get through the meaning, implications, and scope of the proposal<\/li><li>The nature of concern of any Director in the proposal<\/li><li>The note shall also instruct the Directors on how to react to the resolutions and the date of validation.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lets_quickly_summarise_what_we_have_learned_so_far\"><\/span>Let&#8217;s quickly summarise what we have learned so far.&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The resolution shall deem to have been passed by circulation if the agenda is important, and its directly impacting the company&#8217;s growth.&nbsp;<\/li><li>A resolution must be circulated to the directors in the form of a draft attached with the necessary documentation for seeking their approval, by an electronic medium such as E-mail or fax.<\/li><li>The Companies Act, 2013, allows its authorized person to circulate the resolution via hand delivery\/post\/courier\/ to the Directors of the Company.&nbsp;<\/li><li>Directors or the board members can send their acceptance\/ rejection via hand delivery\/post\/courier to the company&#8217;s registered office or via e-mail.&nbsp;<\/li><li>Seven days is the time frame given the Director to respond to the notice.&nbsp;<\/li><li>Resolutions via circulation shall be noted at the upcoming AGM, and the text thereof with dissent or abstention must be recorded in the Minutes of Meeting.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Wrapping_Up\"><\/span>Wrapping Up<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is quite apparent that the circulation of member resolution plays a vital role in the company&#8217;s decision making. Though the circular resolution concept seems simple on the surface, one has to pay attention to the provisions related to it. The whole process of resolution is carried through systematic documentation that needs to increase the authenticity of the draft.&nbsp;<\/p>\n\n\n\n<p>Make sure that these documents are correctly compiled so that every board member must understand the scope of the draft thoroughly. Hopefully, this in-depth article helps you understand the basic concept and the traits of the circulation of member resolution. If you have some doubts, please navigate to the comment section and feel free to drop your question, we will respond to your queries in no time.&nbsp; <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/appointment-of-key-managerial-personnel\/\">Appointment of Key Managerial Personnel\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Circulation of member resolution generally indicates the resolution authorized by the circulation among the members of the board or directors. The resolutions often passed under the state of urgency or to avoid the requirement of assembling the physical board meeting.&nbsp; Alternatively, the board members can play the same role in this regard. Those members who [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":11103,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[415],"tags":[680],"acf":{"service_id":"321"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":12456,"readingTime":7,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/11085"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=11085"}],"version-history":[{"count":26,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/11085\/revisions"}],"predecessor-version":[{"id":48582,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/11085\/revisions\/48582"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/11103"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=11085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=11085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=11085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}