Document background
An Ordinary Resolution of Shareholders is a crucial corporate governance document used in Canadian business operations for recording and implementing shareholder decisions. It is required when shareholders need to approve matters that can be decided by a simple majority vote (over 50%) rather than the higher threshold required for special resolutions. The document is commonly used for routine corporate matters such as appointing directors, approving financial statements, or appointing auditors. The format and requirements for these resolutions are governed by the Canada Business Corporations Act (CBCA) for federal corporations or relevant provincial legislation for provincially incorporated companies. The resolution must include specific details about the meeting or written resolution process, the decision being made, and appropriate certification of the outcome. This document forms part of the company's official records and may need to be filed with regulatory authorities or presented to financial institutions as evidence of corporate authorization.
