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- If youre a small or medium limited company business here in the UK, then gaining an understanding of what a company resolution is and how to use them correctly could save you and your fellow directors and shareholders a lot of grief and agony. Resolutions are legally binding and are part of the decision-making process for limited company members, as stipulated in the Companies Act of 2006. And Ill also explain the potential consequences of simply ignoring the completion of the correct paperwork and resolutions. In this video, we will cover what exactly is a resolution for a limited company, what are the different types or resolutions, a brief look into special resolutions, and finally, why do they even matter and what happens if you dont do anything at all. Before I get into todays video, be sure to visit our Accounting Tax Academy membership area, where you can download various resolution templates to use in your own business. (light digital music) Limited company resolutions