Postal ballot

(1)

Notwithstanding anything contained in this Act, a company—

(a)

shall, in respect of such items of business as the Central Government may, by notification , declare to be transacted only by means of postal ballot ; and

(b)

may, in respect of any item of business, other than ordinary business and any business in respect of which directors or auditors have a right to be heard at any meeting, transact by means of postal ballot, in such manner as may be prescribed, instead of transacting such business at a general meeting.

Proviso

Provided that any item of business required to be transacted by means of postal ballot under clause (a), may be transacted at a general meeting by a company which is required to provide the facility to members to vote by electronic means under section 108, in the manner provided in that section.

(2)

If a resolution is assented to by the requisite majority of the shareholders by means of postal ballot, it shall be deemed to have been duly passed at a general meeting convened in that behalf.

Notes, amendments & references (2)

Refer rule 22 of the Companies (Management & Administration) Rules,2014. To view the rule, Click Here

Provided that Inserted vide Companies (Amendment) Act, 2017 dated 03.01.2018 effective from 09.02.2018. To view the notification, Click Here