Valid Resolution Clause Samples

A Valid Resolution clause defines the requirements and procedures for a resolution or decision to be considered legally effective and binding within an organization or agreement. Typically, this clause outlines who must participate in the decision-making process, the necessary quorum, and the voting thresholds required for a resolution to pass. For example, it may specify that a majority of board members must be present and vote in favor for a resolution to be valid. The core function of this clause is to ensure that important decisions are made transparently and with proper authority, thereby preventing disputes over the legitimacy of resolutions.
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Valid Resolution. A resolution shall be validly passed if approved by the following percentages (or more) of votes validly cast at a duly convened Bondholders' Meeting held in accordance with this Section 12 — each Ordinary Resolution: 51% — each Extraordinary Resolution: 66%