Company Meetings - Law, Practice and Procedure

Meetings concern every organisation. They concern most of the companies registered under the
Companies Act because every company has to hold a variety of meetings during its lifetime. While board, committee and annual general meetings are of regular occurrence, other meetings are of occasional occurrence. The rigmarole of convening and conduct of meetings, and the post-meeting formalities, involve a great deal of work that every company secretary and her/his staff has to attend to. This is equally true of the company which does not have a qualified company secretary. Meetings are governed by the statute and the articles of association of the company and, therefore, complying with the requirements under them is a vital duty of a company secretary. This is more rigorous in listed companies owing to additional obligations under the listing agreement. Sometimes meetings are also impacted by shareholders’ agreement or other documents.

This book caters to the needs of all types of companies, private and public, listed and unlisted as well as concerning all types of meetings. The book not only deals exhaustively with the law as well as procedures and practices relating to all aspects of the convening and conduct of meetings, but also with all types of meetings. The appendix to the book sets out, in simple and lucid language, several sample resolutions that are commonly required to be passed in companies. The book will be equally useful to company secretaries, lawyers and judges. Organisations other than companies will also find it useful as a practical guidebook.

Contents
Preface ................................................................................................. vii
Preface to the First Edition ..................................................................... ix
Contents ............................................................................................... xi
Table of Cases .................................................................................... xliii
CHAPTER 1
Meaning of ‘Meeting’ and Types of Meetings .............................. 1
[A] FEATURES OF CORPORATE PERSONALITY OF A COMPANY
1.1 ATTRIBUTES OF CORPORATE PERSONALITY ...................................... 1
1.2 MINIATURE DEMOCRATIC STATE ..................................................... 5
1.3 DIVISION OF POWERS BETWEEN SHAREHOLDERS
AND DIRECTORS ...................................................................... 7
1.4 POWERS OF BOARD AND SHAREHOLDERS ......................................13
[B] THE MAJORITY RULE
1.5 CORPORATE PERSONALITY OF A COMPANY INCORPORATED
UNDER THE COMPANIES ACT 1956 ........................................20
1.6 SHAREHOLDER’S POSITION IN RELATION TO THE COMPANY ...........21
1.7 IN A COMPANY, THE MAJORITY RULES ........................................22
1.8 MEANING OF ‘MAJORITY RULE’ ..................................................24
1.9 THE CONCEPT OF ‘CONTROL’ OVER A COMPANY ........................25
1.10 THE SOURCES OF POWERS OF CONTROL .....................................27
1.11 CONTROL OF VOTING POWER APART FROM SECTION 4
OF THE COMPANIES ACT 1956 ..............................................29
1.12 CONTROL—DE JURE OR DE FACTO? .........................................30
1.13 JUDICIAL VIEW ON ‘CONTROL’ ....................................................32
[C] MEANING OF ‘MEETING’
1.14 MEANING OF ‘MEETING’ ............................................................42
1.15 MEANING OF ‘GENERAL MEETING’ .............................................48
1.16 MEETINGS BY TELECONFERENCING OR VIDEOCONFERENCING ........48
[D] UNANIMOUS CONSENT IN LIEU OF RESOLUTION
AT A MEETING
1.17 WHETHER MEMBERS CAN WAIVE THE FORMALITIES OF
NOTICE OF A MEETING AND HOLDING A MEETING ...............54
1.18 THE DUOMATIC PRINCIPLE ..........................................................58
1.19 CONSENT MUST BE ON THE BASIS OF FULL KNOWLEDGE
OF THE MATTER ...................................................................62
[E] INJUNCTION AGAINST MEETING
1.20 COURTS ARE AVERSE TO GRANTING INJUNCTION
AGAINST GENERAL MEETINGS .................................................63
CHAPTER 2
Notice of a General Meeting and Explanatory Statement ........... 67
[A] AUTHORITY TO CONVENE A GENERAL MEETING
2.1 WHO CAN CONVENE A GENERAL MEETING? ...............................67
[B] LENGTH OF NOTICE
2.2 STATUTORY REQUIREMENT AS TO NOTICE OF A
GENERAL MEETING ................................................................69
2.3 APPLICABILITY OF SECTION 171 ..................................................70
2.4 LENGTH OF NOTICE OF GENERAL MEETING AND
MEANING OF ‘NOT LESS THAN 21 DAYS’ ...............................70
2.5 LENGTH OF NOTICE WHERE CHANGE IN LAW TAKES
PLACE AFTER NOTICE IS ISSUED ..............................................73
2.6 LENGTH OF NOTICE FOR CALLING A GENERAL MEETING
OF PRIVATE COMPANY ............................................................73
2.7 LENGTH OF NOTICE BY COMPANIES LICENSED
UNDER SECTION 25 ...............................................................74
2.8 SECTION 171(1) IS DIRECTORY, NOT MANDATORY .....................74
2.9 VALIDATION OF IRREGULAR NOTICE BY WAIVER ...........................77
2.10 CHALLENGE TO LEGALITY OF NOTICE .........................................78
2.11 ESTOPPEL ...................................................................................79
2.12 SHORTER NOTICE .......................................................................79
2.13 CAN CONSENT TO SHORTER NOTICE BE GIVEN AFTER
THE NOTICE HAS BEEN SENT? ...............................................81
2.14 PETITION CHALLENGING NOTICE .................................................84
2.15 NON-APPLICABILITY OF SECTIONS 171 AND 172 .........................84
[C] CONTENTS OF NOTICE
2.16 LEGISLATIVE HISTORY OF SECTION 172 ......................................85
2.17 STATUTORY REQUIREMENT AS TO CONTENTS OF NOTICE .............85
2.18 NOTICE MUST BE PROPERLY SIGNED ..........................................85
2.19 NOTICE MUST STATE TYPE OF MEETING .....................................86
2.20 NOTICE MUST STATE PLACE OF MEETING ..................................86
2.21 NOTICE MUST STATE DAY OF MEETING ....................................87
2.22 NOTICE MUST STATE ‘HOUR OF THE MEETING’ ........................87
2.23 NOTICE MUST SET OUT STATEMENT OF BUSINESS ......................88
2.24 NOTICE MUST STATE TYPE OF BUSINESS ....................................89
2.25 IS IT NECESSARY TO SET OUT THE TEXT OF AN ORDINARY
RESOLUTION IN THE NOTICE? ................................................90
2.26 IS IT NECESSARY TO SET OUT THE TEXT OF A SPECIAL
RESOLUTION IN THE NOTICE? ....................................................91
2.27 RULES FOR FRAMING AND INTERPRETATION OF NOTICE ................93
2.28 LIABILITY FOR A FALSE STATEMENT IN NOTICE ......................... 100
[D] TO WHOM NOTICE SHOULD BE GIVEN
2.29 PERSONS ENTITLED TO RECEIVE NOTICE OF
GENERAL MEETING ............................................................. 100
2.30 WHO IS A MEMBER? ............................................................... 102
2.31 WHICH DATE SHOULD BE TAKEN TO ASCERTAIN
MEMBERS ENTITLED TO BE GIVEN NOTICE
OF MEETING? .................................................................... 103
2.32 NOTICE MUST BE GIVEN TO EVERY MEMBER ......................... 104
2.33 WHETHER PREFERENCE SHAREHOLDERS ARE ENTITLED
TO RECEIVE NOTICE AND ATTEND MEETING ...................... 107
2.34 NOTICE TO MEMBERS OUTSIDE INDIA ...................................... 108
2.35 NOTICE TO SHAREHOLDER IN ENEMY TERRITORY ...................... 109
2.36 NOTICE TO INSOLVENT MEMBER ............................................. 110
[E] CONSEQUENCE OF OMISSION TO GIVE NOTICE
2.37 ACCIDENTAL OMISSION TO GIVE NOTICE AND NON-RECEIPT
OF NOTICE ........................................................................ 111
2.38 DELAY IN SERVICE DUE TO POSTAL STRIKE ............................... 113
[F] SERVICE OF NOTICE
2.39 STATUTORY PROVISION ............................................................ 114
2.40 MODES OF SERVICE OF DOCUMENT ON MEMBER .................... 115
2.41 SERVICE OF NOTICE PERSONALLY .............................................. 115
2.42 MEANING OF ‘DOCUMENT’ ..................................................... 116
2.43 SERVICE OF DOCUMENT BY POST ............................................ 116
2.44 PRESUMPTION AS TO SERVICE UNDER COMPANIES
ACT 1956 ......................................................................... 117
2.45 PRESUMPTION AS TO SERVICE UNDER GENERAL CLAUSES
ACT 1897 ......................................................................... 122
2.46 MEANING OF THE WORD ‘HOUR’ ........................................... 125
2.47 MEANING OF ‘ORDINARY COURSE OF POST’ ............................. 125
2.48 SERVICE BY REGISTERED POST .................................................. 125
2.49 SERVICE OF A DOCUMENT IN CASE OF A DECEASED
SHAREHOLDER ..................................................................... 126
2.50 SERVICE OF DOCUMENT ON A CORPORATE MEMBER ................. 127
2.51 SERVICE OF DOCUMENT ON SHAREHOLDER WHO HAS
NOT SUPPLIED ADDRESSES IN INDIA ..................................... 127
2.52 SERVICE OF DOCUMENT IN CASE OF SHARES HELD JOINTLY ...... 128
2.53 SERVICE OF DOCUMENT ON INSOLVENT SHAREHOLDER ............. 128
2.54 NOTICE BY FAX ...................................................................... 128
[G] ORDINARY BUSINESS AND SPECIAL BUSINESS
2.55 WHAT IS ORDINARY BUSINESS AND SPECIAL BUSINESS ................ 129
2.56 IS IT NECESSARY TO SET OUT ORDINARY BUSINESS
AND SPECIAL BUSINESS IN THAT ORDER? .............................. 130
[H] EXPLANATORY STATEMENT
2.57 STATUTORY PROVISION ............................................................. 131
2.58 WHAT IS ‘EXPLANATORY STATEMENT’? ....................................... 131
2.59 LEGISLATIVE HISTORY OF SECTION 173 .................................... 132
2.60 REQUIREMENT AS REGARDS EXPLANATORY STATEMENT................ 132
2.61 PURPOSE OF EXPLANATORY STATEMENT ..................................... 134
2.62 PRINCIPLES GOVERNING EXPLANATORY STATEMENT ..................... 135
2.63 WHETHER SECTION 173 APPLIES TO APPOINTMENT
OF ADDITIONAL DIRECTOR .................................................. 140
2.64 WHETHER NOTICE OF REQUISITIONED EXTRA-ORDINARY
GENERAL MEETING SHOULD ACCOMPANY
EXPLANATORY STATEMENT .................................................... 141
2.65 WHETHER CHANGE IN MATERIAL FACTS SHOULD
BE INFORMED ..................................................................... 141
2.66 WHETHER EXPLANATORY STATEMENT IS REQUIRED
FOR NOTICE OF MEETING ORDERED UNDER
SECTION 391 ..................................................................... 143
2.67 MINISTRY OF CORPORATE AFFAIRS’ VIEWS ................................. 143
2.68 DISCLOSURE OF DIRECTOR’S INTEREST ..................................... 144
2.69 CONSTRUCTION OF EXPLANATORY STATEMENT ........................... 145
2.70 WHETHER NON-COMPLIANCE OF SECTION 173(2) MAKES
A CASE FOR OPPRESSION OF MINORITY SHAREHOLDER .......... 146
2.71 INSPECTION OF DOCUMENT REFERRED TO IN THE
EXPLANATORY STATEMENT .................................................... 147
2.72 WHETHER AN EXPLANATORY STATEMENT IS NECESSARY
WHEN NOTICE IS GIVEN BY ADVERTISEMENT ...................... 148
2.73 DISCLOSURES REQUIRED UNDER CLAUSE 40 OF THE
LISTING AGREEMENT ............................................................ 148
2.74 DISCLOSURES REQUIRED UNDER UNLISTED PUBLIC
COMPANIES (PREFERENTIAL ALLOTMENT) RULES 2003 .......... 149
2.75 DISCLOSURES REQUIRED UNDER PRIVATE LIMITED COMPANY
AND UNLISTED PUBLIC LIMITED COMPANY
(BUY-BACK OF SECURITIES) RULES 1999 .............................. 150
2.76 DISCLOSURES REQUIRED UNDER THE SECURITIES AND
EXCHANGE BOARD OF INDIA (BUYBACK OF SECURITIES)
REGULATIONS 1998 ............................................................ 152
[I] SPECIAL NOTICES
[J] SPECIAL NOTICE UNDER 257
2.77 FILLING RETIRING DIRECTOR’S VACANCY ................................... 154
2.78 NOTICE OF CANDIDATURE ....................................................... 155
2.79 COMPANY’S DUTY TO INFORM MEMBERS .................................. 157
2.80 DO SECTIONS 171 AND 173 APPLY TO THE NOTICE UNDER
SECTION 257(1A)?............................................................. 158
2.81 APPLICABILITY OF SECTION 257 TO A PRIVATE COMPANY .......... 159
2.82 HOW RESOLUTION SHOULD BE MOVED AT THE MEETING ....... 160
2.83 APPLICABILITY OF SECTION 257 IN CASE OF A
GOVERNMENT COMPANY ..................................................... 160
[K] CHECKLISTS ON NOTICE OF A GENERAL MEETING
CHAPTER 3
Motions and Resolutions ...........................................................165
[A] MEANING OF ‘MOTION’ AND ‘RESOLUTION’
3.1 MEANING OF ‘MOTION’ AND ‘RESOLUTION’ ............................ 165
3.2 FORMAL OR PROCEDURAL MOTIONS ......................................... 166
3.3 ESTOPPEL ................................................................................ 169
[B] TYPES OF RESOLUTIONS UNDER THE COMPANIES ACT 1956
3.4 TWO TYPES OF RESOLUTIONS .................................................. 169
3.5 LEGISLATIVE HISTORY OF SECTION 189 .................................... 170
3.6 MEANING OF ‘ORDINARY RESOLUTION’ .................................... 171
3.7 MATTERS REQUIRING ORDINARY RESOLUTION............................ 172
3.8 MEANING OF ‘SPECIAL RESOLUTION’ ........................................ 175
3.9 CONDITIONS FOR PASSING A RESOLUTION AS A
SPECIAL RESOLUTION ........................................................... 176
3.10 MATTERS REQUIRING SPECIAL RESOLUTION ................................ 179
3.11 SHORTER NOTICE OF SPECIAL RESOLUTION............................... 181
[C] AMENDMENTS TO RESOLUTIONS
3.12 WHETHER A RESOLUTION CAN BE AMENDED AT A MEETING ... 181
3.13 AMENDMENT MUST BE GERMANE TO RESOLUTION ................... 183
3.14 AMENDMENT TO SPECIAL RESOLUTION ..................................... 184
3.15 CHAIRMAN’S DUTY AS TO AMENDMENTS .................................. 187
3.16 PROCEDURE AS TO AMENDMENT .............................................. 189
3.17 CAN A RESOLUTION NOTIFIED BE DROPPED OR WITHDRAWN
AT THE MEETING? ............................................................. 190
[D] RESOLUTIONS REQUIRING SPECIAL NOTICE
3.18 WHAT IS ‘SPECIAL NOTICE’? .................................................... 191
3.19 LEGISLATIVE HISTORY OF SECTION 190 .................................... 192
3.20 MATTERS WHICH REQUIRE SPECIAL NOTICE .............................. 194
3.21 SPECIAL NOTICE TO BE GIVEN TO THE COMPANY .................... 194
3.22 WHO CAN GIVE SPECIAL NOTICE ............................................. 194
3.23 MODE OF SERVICE OF NOTICE ............................................... 196
3.24 COMPANY’S DUTY AS REGARDS SPECIAL NOTICE ....................... 197
3.25 DO SECTIONS 171 AND 173 APPLY TO THE NOTICE
UNDER SECTION 190(2)? ................................................... 199
[E] SEPARATE RESOLUTIONS TO BE FOR APPOINTMENT
OF DIRECTORS
3.26 STATUTORY OBLIGATION ........................................................... 199
3.27 EVERY DIRECTOR MUST BE APPOINTED BY SEPARATE
RESOLUTION ....................................................................... 200
[F] REGISTRATION OF RESOLUTIONS WITH REGISTRAR
3.28 STATUTORY PROVISION ............................................................. 201
3.29 REGISTRATION OF RESOLUTIONS AND AGREEMENTS
WITH REGISTRAR ................................................................ 203
3.30 RESOLUTIONS REQUIRING REGISTRATION ................................... 203
3.31 AGREEMENTS REQUIRING REGISTRATION ..................................... 204
3.32 PROCEDURE FOR REGISTRATION ................................................ 204
3.33 COMPUTATION OF 30 DAYS FOR REGISTRATION OF RESOLUTIONS
PASSED AT ADJOURNED MEETING ........................................ 205
3.34 EMBODIMENT OF OR ANNEXING RESOLUTION AND
AGREEMENT IN ARTICLES ..................................................... 205
[G] CIRCULATION OF MEMBERS’ RESOLUTIONS
3.35 STATUTORY PROVISION ............................................................. 206
3.36 MEMBERS’ STATUTORY RIGHT ................................................... 208
3.37 LEGISLATIVE HISTORY OF SECTION 188 .................................... 209
3.38 MEMBERS’ RIGHT OF CIRCULATION OF A RESOLUTION ............. 209
3.39 ELIGIBILITY FOR REQUISITION FOR CIRCULATION
OF RESOLUTION ................................................................. 210
3.40 HOW A REQUISITION SHOULD BE MADE .................................. 210
3.41 TIME LIMIT FOR DEPOSITING REQUISITION ................................ 211
3.42 COMPANY’S DUTY TO CIRCULATE RESOLUTION/
STATEMENT ......................................................................... 212
3.43 HOW NOTICE/STATEMENT SHOULD BE SENT TO MEMBERS ....... 212
3.44 NO EXPLANATORY STATEMENT NECESSARY ................................. 212
3.45 COMPANY LAW BOARD’S POWER TO RESTRAIN CIRCULATION
OF STATEMENT ................................................................... 213
3.46 PROCEDURE FOR MAKING A PETITION UNDER
SECTION 188(5) ................................................................ 213
3.47 ORDER DIRECTING INSPECTION ................................................ 214
[H] PASSING OF RESOLUTIONS BY POSTAL BALLOT
3.48 THE STATUTORY PROVISION ...................................................... 214
3.49 LEGISLATIVE HISTORY OF SECTION 192A ................................. 215
3.50 CAN UNLISTED PUBLIC COMPANIES AND PRIVATE COMPANIES
PASS RESOLUTIONS BY POSTAL BALLOT? ............................... 217
3.51 THE CONCEPT OF POSTAL BALLOT .......................................... 217
3.52 APPLICABILITY OF PROVISIONS CONCERNING MEETINGS .............. 219
3.53 THE REQUIREMENTS OF SECTION 192 REGARDING
POSTAL BALLOT .................................................................. 219
3.54 RESOLUTIONS WHICH MUST AND WHICH MAY BE PASSED
BY POSTAL BALLOT ............................................................. 221
3.55 NOTICE OF POSTAL BALLOT .................................................... 223
3.56 PASSING OF A RESOLUTION ..................................................... 223
3.57 CIRCULARS ISSUED BY MINISTRY OF CORPORATE AFFAIRS ............ 226
[I] DRAFTING COMPANY RESOLUTIONS
3.58 STYLE OF WRITING MINUTES .................................................. 249
3.59 GENERAL GUIDELINES FOR DRAFTING IN PLAIN LANGUAGE ......... 252
3.60 SPECIFIC GUIDELINES FOR DRAFTING RESOLUTIONS IN
PLAIN LANGUAGE ................................................................. 253
CHAPTER 4
Quorum at a General Meeting ...................................................257
[A] MEANING AND STATUTORY FRAMEWORK
4.1 MEANING OF ‘QUORUM’ ......................................................... 257
4.2 LEGISLATIVE HISTORY OF SECTION 174 .................................... 258
4.3 STATUTORY QUORUM ............................................................... 258
4.4 SPECIAL PROVISIONS IN THE ARTICLES AS TO QUORUM.............. 262
4.5 WHETHER PRESENCE OF PREFERENCE SHAREHOLDER CAN
BE CONSIDERED FOR QUORUM ............................................ 262
4.6 MEMBERS MUST BE ‘PERSONALLY PRESENT’ .............................. 263
4.7 REPRESENTATIVES OF BODIES CORPORATE, PRESIDENT
OF INDIA AND GOVERNOR OF A STATE ............................... 263
4.8 JOINT SHAREHOLDERS .............................................................. 264
4.9 PERSON ATTENDING MEETING IN DIFFERENT CAPACITIES ........... 266
4.10 WHETHER QUORUM MUST BE PRESENT THROUGHOUT
THE MEETING .................................................................... 266
4.11 CONSEQUENCE OF LACK OF QUORUM..................................... 270
4.12 ADJOURNMENT OF INQUORATE MEETING .................................. 272
4.13 ADJOURNMENT OF MEETING UNDER SECTION 256 ................... 272
4.14 QUORUM AT CLASS MEETINGS ................................................. 273
4.15 ONE MEMBER PRESENT DOES NOT CONSTITUTE
A MEETING ........................................................................ 273
4.16 NO OBLIGATION TO HOLD A GENERAL MEETING WHERE
A COMPANY HAS ONLY ONE MEMBER ................................. 277
4.17 ONE-MEMBER MEETING BY STATUTORY EXCEPTION ................... 277
4.18 ONE-MEMBER MEETING WHERE ALL SHARES ARE HELD
BY ONE PERSON ................................................................. 278
CHAPTER 5
Proxies and Representatives at a General Meeting ....................283
[A] MEANING AND STATUTORY FRAMEWORK
5.1 MEANING OF ‘PROXY’ ............................................................. 283
5.2 STATUTORY PROVISION ............................................................. 284
5.3 LEGISLATIVE HISTORY OF SECTION 176 .................................... 284
[B] APPLICABILITY AND NON-APPLICABILITY OF SECTION 176
5.4 COMPANIES NOT ENTITLED TO EXCLUDE APPLICABILITY
OF SECTION 176................................................................ 287
5.5 A COMPANY NOT HAVING A SHARE CAPITAL ............................. 287
5.6 MEMBER HAS NO INHERENT RIGHT TO APPOINT PROXY ........... 288
5.7 RIGHT TO APPOINT MORE PROXIES THAN ONE......................... 289
5.8 PROXY APPOINTED BY ATTORNEY.............................................. 289
5.9 WHO CAN BE APPOINTED AS PROXY? ....................................... 289
[C] RIGHTS AND DUTIES OF PROXY
5.10 PROXY IS AGENT...................................................................... 290
5.11 PROXY’S RIGHT OF VOTING .................................................... 291
5.12 PROXY NOT ENTITLED TO SPEAK ............................................. 291
5.13 PROXY ENTITLED TO DEMAND POLL ........................................ 292
5.14 PROXY ENTITLED TO VOTE ON AMENDMENT ........................... 292
5.15 MODEL PROVISIONS IN ARTICLES .............................................. 292
5.16 COMPANY’S DUTY REGARDING APPOINTMENT OF PROXIES .......... 293
[D] MODE OF APPOINTMENT OF PROXY
5.17 FORM OF PROXY ..................................................................... 294
5.18 SPECIAL REQUIREMENT UNDER ARTICLES REGARDING
INSTRUMENT OF PROXY ....................................................... 297
5.19 THE FORM PRESCRIBED IN SCHEDULE IX TO THE ACT
IS NOT MANDATORY ........................................................... 298
5.20 SIGNING AND DATING OF PROXY FORM ................................... 298
5.21 HOW SHOULD A PROXY FORM BE SIGNED? ............................... 300
5.22 WHETHER PROXY RECEIVED BY FAX IS VALID ........................... 301
[E] STAMP DUTY ON INSTRUMENT OF PROXY
5.23 VALUE OF STAMP .................................................................... 302
5.24 STAMP DUTY ON PROXY FOR MORE THAN ONE MEETING ........ 302
5.25 UNSTAMPED OR INSUFFICIENTLY STAMPED PROXY ...................... 303
5.26 EFFECT OF ADJUDICATION....................................................... 304
5.27 BLANK/ERROR/ALTERATION/OMISSION IN INSTRUMENT
OF PROXY .......................................................................... 305
5.28 CANCELLATION OF STAMPS ....................................................... 306
5.29 STAMP DUTY ON PROXIES FOR CREDITORS’ MEETINGS ............. 307
5.30 PROXY EXECUTED OUTSIDE INDIA ............................................ 308
[F] OTHER REQUIREMENTS AS TO PROXIES
5.31 TIME LIMIT FOR DEPOSITING PROXY ......................................... 308
5.32 REGISTER OF PROXIES .............................................................. 309
5.33 INSPECTION OF PROXIES ........................................................... 310
5.34 PROXIES AT ADJOURNED MEETING ........................................... 311
[G] REVOCATION OF PROXY
5.35 RIGHT OF REVOCATION .......................................................... 311
5.36 REVOCATION MUST COMPLY WITH ARTICLES ............................ 312
5.37 NOTICE OF REVOCATION ....................................................... 316
[H] INVITATION TO APPOINT PROXY
5.38 SOLICITING PROXIES BY THE COMPANY IS AN OFFENCE ............. 316
5.39 SOLICITING PROXIES BY OTHERS IS NOT AN OFFENCE ............. 318
[I] REPRESENTATION OF CORPORATIONS AT MEETINGS
OF COMPANIES AND OF CREDITORS
5.40 STATUTORY PROVISION ............................................................. 318
5.41 LEGISLATIVE HISTORY OF SECTION 187 ................................... 319
5.42 PURPOSE OF SECTION 187....................................................... 320
5.43 MEANING OF ‘BODY CORPORATE’ ............................................ 322
5.44 SECTION 187 APPLIES IN RESPECT OF MEMBERS’
AND CREDITORS’ MEETINGS ................................................ 324
5.45 HOW THE REPRESENTATIVE SHOULD BE AUTHORISED ............... 324
5.46 A RESOLUTION SUBSISTING UNTIL REVOKED OR SUPERSEDED
BY ANOTHER RESOLUTION IS VALID ..................................... 326
5.47 A COPY OF BOARD RESOLUTION MUST BE PRODUCED
BEFORE A MEETING IS ATTENDED ....................................... 326
5.48 RIGHTS OF THE AUTHORISED REPRESENTATIVE .......................... 327
5.49 REVOCATION OR RENEWAL OF AUTHORISATION ....................... 329
[J] REPRESENTATING THE PRESIDENT AND GOVERNORS AT MEETINGS
OF COMPANIES OF WHICH THEY ARE MEMBERS
5.50 STATUTORY PROVISION ............................................................. 329
5.51 LEGISLATIVE HISTORY OF SECTION 187A ................................. 329
5.52 MODE OF AUTHORISATION BY PRESIDENT OR GOVERNOR ......... 329
5.53 STATUS OF REPRESENTATIVE ..................................................... 330
5.54 HOW A PERSON SHOULD BE AUTHORISED ................................ 330
5.55 HOW AN AUTHORISED REPRESENTATIVE CAN ATTEND
A MEETING ........................................................................ 330
[K] CHECKLIST ON PROXIES
CHAPTER 6
Voting at a General Meeting ......................................................333
[A] NATURE OF VOTING RIGHT
6.1 MEANING OF ‘VOTE’ AND ‘VOTING’ ....................................... 333
6.2 NATURE OF VOTING RIGHT ..................................................... 334
6.3 ONLY A ‘MEMBER’ IS ENTITLED TO VOTE? ............................. 336
6.4 WHICH MEMBERS ARE ENTITLED TO VOTE? ............................ 339
6.5 PROVISIONS OF THE COMPANIES ACT 1956 GOVERNING
VOTING RIGHTS .................................................................. 341
6.6 OBJECT OF SECTIONS 87 TO 90 ............................................. 342
[B] EQUITY SHAREHOLDER’S RIGHT OF VOTING
6.7 PRINCIPLE OF EQUAL VOTING RIGHT........................................ 343
6.8 OBJECTION TO VOTING AND CHAIRMAN’S PREROGATIVE ............ 343
6.9 BANKRUPT SHAREHOLDER ......................................................... 346
6.10 MORTGAGEE............................................................................ 347
6.11 UNPAID VENDOR ..................................................................... 347
6.12 MEMBER OF UNSOUND MIND ................................................. 347
6.13 RESTRICTION ON VOTING RIGHT IN CASE OF A JOINT
VENTURE COMPANY............................................................. 347
6.14 PERSON ENTITLED TO TRANSFER SHARES ON TRANSMISSION ....... 348
6.15 JOINT SHAREHOLDERS .............................................................. 348
6.16 ALIEN ENEMY .......................................................................... 349
6.17 A MEMBER NOT ENTITLED TO VOTING RIGHT IN
REGARD TO CALLS PAID IN ADVANCE ................................... 350
6.18 VOTING RIGHTS OF MEMBERS OF A PRIVATE COMPANY ............ 350
[C] SHARES WITH DIFFERENTIAL VOTING RIGHTS
6.19 CLASSES OF SHARES ................................................................ 350
6.20 ISSUE OF SHARES WITH DIFFERENTIAL VOTING RIGHTS ............. 351
6.21 MODEL PROVISIONS IN THE MEMORANDUM AND ARTICLES
OF ASSOCIATION ................................................................. 352
6.22 CONDITIONS TO BE FULFILLED FOR ISSUE OF SHARES WITH
DIFFERENTIAL RIGHTS .......................................................... 353
[D] VOTING RIGHTS OF PREFERENCE SHAREHOLDERS
6.23 STATUTORY PROVISIONS ........................................................... 355
6.24 PROVISION IN ARTICLES .......................................................... 356
6.25 LIMITED VOTING RIGHT .......................................................... 357
6.26 UNLIMITED VOTING RIGHT ...................................................... 358
6.27 WHEN A DIVIDEND IS DEEMED TO BE ‘DUE’ .......................... 359
6.28 DIVIDEND PAYABLE ON SPECIFIED DATE ................................... 360
6.29 DIVIDEND NOT PAYABLE ON SPECIFIED DATE ........................... 360
[E] RESTRICTIONS ON VOTING RIGHT
6.30 RESTRICTION WHEN CALL MONEY NOT PAID .......................... 361
6.31 LEGISLATIVE HISTORY OF SECTIONS 181 AND 182 .................. 361
6.32 RESTRICTION ON VOTING RIGHT DUE TO CALLS IN ARREAR ..... 362
6.33 INCONSISTENCY BETWEEN SECTION 181 AND
REGULATION 59 .................................................................. 363
6.34 SCOPE OF ‘OTHER SUMS PAYABLE BY HIM’ .............................. 364
6.35 EFFECT ON OTHER PROVISIONS ............................................... 364
6.36 RIGHT TO REQUISITION GENERAL MEETING ............................. 365
6.37 RESTRICTION ON VOTING RIGHT AS TO PERIOD OF
HOLDING OR ON ANY OTHER GROUND ............................. 365
6.38 RESTRICTION ON VOTING RIGHT IN PRIVATE COMPANIES .......... 367
6.39 PROHIBITION/RESTRICTION ON VOTING RIGHTS OF A
DEPOSITORY IN THE CASE OF GDR/ADR ......................... 368
[F] MEMBER’S RIGHT AS TO THE USE OF VOTES
6.40 A MEMBER IS ENTITLED TO USE HIS VOTES DIFFERENTLY ........ 373
6.41 RIGHT OF SPLITTING VOTES .................................................... 374
6.42 CONDITIONAL VOTE IS NO VOTE ............................................ 374
[G] VOTING BY SHOW OF HANDS
6.43 METHODS OF VOTING ............................................................ 375
6.44 VOTING IN THE FIRST INSTANCE TO BE BY A SHOW
OF HANDS ......................................................................... 375
6.45 NON-APPLICABILITY OF SECTION 177 ....................................... 376
6.46 VOTING POWER ON SHOW OF HANDS ..................................... 376
6.47 PROCEDURE FOR VOTING BY SHOW OF HANDS ....................... 378
6.48 RESULT OF VOTING ON SHOW OF HANDS............................... 378
[H] VOTING BY POLL
6.49 STATUTORY PROVISION ............................................................. 381
6.50 LEGISLATIVE HISTORY OF SECTION 179 .................................... 381
6.51 MEANING AND CHARACTERISTICS OF POLL ............................... 382
6.52 VOTING POWER OF EQUITY SHAREHOLDERS ON POLL ............... 383
[I] MEMBERS’ RIGHT TO DEMAND POLL
6.53 ELIGIBILITY TO DEMAND POLL ................................................. 384
6.54 NATURE OF RIGHT TO DEMAND POLL ..................................... 385
6.55 WHEN CAN POLL BE DEMANDED? ........................................... 385
6.56 EFFECT OF DEMAND FOR POLL ON VOTING BY SHOW
OF HANDS ......................................................................... 387
6.57 PROXY’S RIGHT TO DEMAND POLL........................................... 388
6.58 JOINT HOLDER’S RIGHT TO DEMAND POLL .............................. 388
6.59 CORPORATE REPRESENTATIVE’S RIGHT TO DEMAND A POLL ....... 390
6.60 WITHDRAWAL OF DEMAND FOR POLL ...................................... 390
6.61 MAINTAINABILITY OF APPEAL UNDER SECTION 10F ................... 390
[J] CHAIRMAN’S POWER TO ORDER POLL
6.62 CHAIRMAN’S POWER TO ORDER A POLL ................................... 390
6.63 TIME WHEN CHAIRMAN CAN ORDER POLL ............................... 391
[K] TIME OF TAKING POLL
6.64 POLL TO BE TAKEN WITHIN THE TIME STIPULATED .................. 391
6.65 POLL TO BE TAKEN ‘FORTHWITH’ ........................................... 392
6.66 CHAIRMAN’S DISCRETION ........................................................ 394
[L] THE CONDUCT OF POLL
6.67 CHAIRMAN’S DUTY TO CONDUCT POLL ................................... 394
6.68 PROCEDURE FOR TAKING POLL ................................................ 395
[M] SCRUTINY OF POLL
6.69 STATUTORY PROVISION ............................................................. 396
6.70 CHAIRMAN’S DUTY TO APPOINT SCRUTINEERS .......................... 397
6.71 WHO CAN BE APPOINTED AS SCRUTINEER ............................... 397
6.72 ROLES, DUTIES AND FUNCTIONS OF SCRUTINEERS ................... 398
6.73 CHECKLIST FOR SCRUTINEERS OF POLL ................................... 399
6.74 RESULT OF POLL ................................................................... 400
[N] VOTING FOR ELECTION OF DIRECTORS BY BALLOT
AT ANNUAL GENERAL MEETING OF A COMPANY
LICENSED UNDER SECTION 25
6.75 MEANING OF ‘BALLOT’ ........................................................... 401
6.76 PROCEDURE FOR ELECTION OF DIRECTORS BY BALLOT ............. 402
6.77 NON-APPLICABILITY OF CERTAIN PROVISIONS ............................. 404
CHAPTER 7
Chairman of and Proceedings at a General Meeting..................405
[A] APPOINTMENT OF THE CHAIRMAN
7.1 WHO CAN APPOINT CHAIRMAN OF A GENERAL MEETING? ........ 405
7.2 CAN SHAREHOLDERS APPOINT CHAIRMAN AT THE MEETING? ..... 406
7.3 PRESIDING OVER GENERAL MEETINGS IN ABSENCE
OF CHAIRMAN OF BOARD.................................................... 409
7.4 PRESIDING OVER GENERAL MEETINGS IF ARTICLE DO
NOT CONTAIN ANY PROVISION ............................................ 411
7.5 NON-APPLICABILITY OF SECTION 175 ....................................... 411
[B] DUTIES OF CHAIRMAN OF GENERAL MEETING
7.6 DUTIES REGARDING CONDUCT OF MEETING ........................... 412
7.7 CHAIRMAN’S DUTIES, RIGHTS AND POWERS GENERALLY ............. 413
7.8 PROCEEDINGS AT A GENERAL MEETING ................................... 416
7.9 CHAIRMAN’S POWER TO ADJOURN MEETING ............................. 423
[C] CHAIRMAN’S CASTING VOTE AT GENERAL MEETINGS
7.10 MEANING OF ‘CASTING VOTE’ ............................................... 423
7.11 CHAIRMAN DOES NOT HAVE INHERENT RIGHT TO
THE CASTING VOTE ............................................................ 424
7.12 PROVISION IN ARTICLES REGARDING CASTING VOTE ................. 424
7.13 IS THE CASTING VOTE A ‘SECOND VOTE’? .............................. 425
7.14 CHAIRMAN’S RIGHT TO USE CASTING VOTE ............................. 426
7.15 CHAIRMAN OF A MEETING CAN USE CASTING VOTE ................ 427
7.16 CAN CHAIRMAN USE CASTING VOTE WHEN HE DOES
NOT HAVE DELIBERATIVE VOTE? ......................................... 427
[D] CHECKLIST ON CHAIRMAN OF A GENERAL MEETING
CHAPTER 8
Adjournment and Postponement of a General Meeting ...........431
[A] ADJOURNMENT OF A GENERAL MEETING
8.1 MEANING OF ‘ADJOURNMENT’ AND ‘POSTPONEMENT’ ............... 431
8.2 CAN A MEETING BE CANCELLED OR POSTPONED? .................... 432
8.3 POWER TO ADJOURN GENERAL MEETING .................................. 437
8.4 CIRCUMSTANCES IN WHICH A MEETING MAY BE ADJOURNED .... 439
8.5 RESOLUTION FOR ADJOURNMENT.............................................. 439
8.6 NOTICE OF ADJOURNED MEETING ........................................... 440
8.7 BUSINESS TO BE TRANSACTED AT ADJOURNED MEETING ........... 441
8.8 PROXIES AT ADJOURNED MEETING ............................................ 443
8.9 ADJOURNMENT OF ANNUAL GENERAL MEETING AND
AUTOMATIC RE-APPOINTMENT OF RETIRING DIRECTORS ........ 445
[B] CHAIRMAN’S POWER TO ADJOURN A GENERAL MEETING
8.10 ARTICLE EMPOWERING CHAIRMAN TO ADJOURN A
GENERAL MEETING ............................................................. 446
8.11 CHAIRMAN’S INHERENT POWER TO ADJOURN A
GENERAL MEETING ............................................................. 446
8.12 CHAIRMAN’S DUTY TO ADJOURN MEETING ............................... 450
CHAPTER 9
General Meetings of Private Companies and
Section 25 of the Companies Act 1956 .................................453
[A] APPLICABILITY OF SECTIONS 171 TO 186 TO
PRIVATE COMPANIES
9.1 STATUTORY PROVISION ............................................................. 453
9.2 LEGISLATIVE HISTORY OF SECTION 170 .................................... 454
9.3 EXTENT OF APPLICABILITY OF SECTIONS 171 TO 186 .............. 454
9.4 OPTIONAL APPLICABILITY OF SECTIONS 171 TO 186
TO PRIVATE COMPANIES ....................................................... 455
9.5 APPLICABILITY OF SECTION 173 TO PRIVATE COMPANY .............. 458
[B] EXCLUSIONS AND MODIFIFCATIONS
9.6 PROVISIONS WHICH CONTAIN EXCLUSION/MODIFYING
CLAUSE ............................................................................... 459
9.7 CAN ARTICLES EXCLUDE THE RIGHT TO DEMAND POLL
UNDER SECTION 179? ........................................................ 459
9.8 WHETHER SECTION 9 AFFECTS PROVISIONS IN ARTICLES ............ 461
9.9 CAN ARTICLES PROVIDE FOR A QUORUM OF
ONE PERSON? ..................................................................... 461
9.10 EXCLUSION AND MODIFICATION OF PROVISIONS IN
SECTIONS 171 TO 186 AND TABLE A ................................. 462
9.11 SPECIMEN ARTICLES ................................................................. 473
9.12 VOTING RIGHTS OF MEMBERS OF A PRIVATE COMPANY ............ 478
9.13 SPECIMEN ARTICLES ................................................................ 480
9.14 DEPRIVING MEMBERS OF VOTING RIGHTS IS OPPRESSIVE
CONDUCT .......................................................................... 482
[C] PROVISIONS APPLICABLE TO GENERAL MEETING OF A
SECTION-25 COMPANY
9.15 A COMPANY HOLDING LICENCE UNDER SECTION 25 OF
THE COMPANIES ACT 1956 ................................................ 483
9.16 PROVISIONS REGARDING GENERAL MEETINGS ............................ 484
9.17 EXEMPTIONS ........................................................................... 485
9.18 ELECTION OF DIRECTORS BY BALLOT AT ANNUAL
GENERAL MEETING OF SECTION-25 COMPANY ..................... 485
9.19 MODEL ARTICLES .................................................................... 487
CHAPTER 10
Statutory Meeting ......................................................................491
[A] STATUTORY REQUIREMENTS AS TO
STATUTORY MEETING
10.1 WHAT IS ‘STATUTORY MEETING’? ............................................. 491
10.2 PERIOD LIMIT FOR HOLDING STATUTORY MEETING ................... 491
10.3 COMPANIES WHICH MUST HOLD STATUTORY MEETING ............. 492
10.4 PERSONS ENTITLED TO ATTEND STATUTORY MEETING .............. 493
[B] STATUTORY REPORT
10.5 BOARD’S DUTY REGARDING STATUTORY REPORT ........................ 493
10.6 CONTENTS OF STATUTORY REPORT .......................................... 494
10.7 FORMAT OF STATUTORY REPORT ............................................... 494
10.8 APPROVAL OF STATUTORY REPORT BY BOARD ............................ 495
10.9 AUDITOR’S CERTIFICATION OF STATUTORY REPORT .................... 495
10.10 NOTICE AND STATUTORY REPORT ............................................ 495
10.11 FILING STATUTORY REPORT AT REGISTRAR’S OFFICE ................... 496
[C] PROCEEDINGS AT STATUTORY MEETING
10.12 LIST OF MEMBERS ................................................................. 496
10.13 CONSIDERATION OF STATUTORY REPORT AND PASSING
OF RESOLUTION(S) ............................................................. 496
10.14 FILING OF SPECIAL RESOLUTION(S) .......................................... 497
[D] DEFAULT IN HOLDING STATUTORY MEETING OR
FILING STATUTORY REPORT
CHAPTER 11
Annual General Meeting............................................................499
[A] EVERY COMPANY TO HOLD ANNUAL GENERAL MEETING
11.1 STATUTORY PROVISIONS REGARDING ANNUAL
GENERAL MEETING ............................................................. 499
11.2 NEED FOR ANNUAL GENERAL MEETING ................................... 501
[B] PERIOD LIMIT FOR HOLDING ANNUAL GENERAL MEETING
11.3 ANNUAL GENERAL MEETING MUST BE HELD IN
EACH ‘YEAR’ ....................................................................... 502
11.4 PERIOD LIMIT TO HOLD FIRST ANNUAL GENERAL MEETING ...... 502
11.5 INTERVAL BETWEEN TWO ANNUAL GENERAL MEETINGS ............. 503
11.6 TIME LIMIT FOR LAYING ANNUAL ACCOUNTS AT ANNUAL
GENERAL MEETING ............................................................. 504
11.7 MEANING OF ‘FINANCIAL YEAR’ ............................................... 504
11.8 PERIOD TO WHICH THE FIRST PROFIT AND LOSS ACCOUNT
MUST RELATE .................................................................... 505
11.9 PERIOD TO WHICH SUBSEQUENT PROFIT AND LOSS
ACCOUNTS MUST RELATE .................................................... 506
11.10 RELEVANCE OF SECTION 210 IN FIXING DATE OF
ANNUAL GENERAL MEETING ................................................ 506
[C] EXTENSION OF TIME FOR HOLDING ANNUAL GENERAL MEETING
11.11 REGISTRAR’S POWER TO EXTEND TIME FOR HOLDING ANNUAL
GENERAL MEETING ................................................................. 509
11.12 MCAS’ INSTRUCTIONS ON EXTENSION OF TIME ...................... 510
11.13 EFFECT OF EXTENSION ON SECTION 210 ................................ 511
11.14 POSTPONEMENT OF ANNUAL GENERAL MEETING ...................... 513
[D] NATURE AND SCOPE OF SECTION 166
11.15 PROVISIONS OF SECTION 166 ARE MANDATORY ........................ 513
11.16 WHETHER PROVISIONAL LIQUIDATOR HAS TO CONVENE
ANNUAL GENERAL MEETING ................................................ 514
11.17 FAILURE TO HOLD ANNUAL GENERAL MEETING CANNOT
BE GROUND OF WINDING UP ............................................. 515
11.18 INJUNCTION AGAINST ANNUAL GENERAL MEETING .................... 515
11.19 PETITION TO DECLARE A MEETING INVALID
NOT MAINTAINABLE ............................................................ 515
[E]TIME OF ANNUAL GENERAL MEETING
11.20 ANNUAL GENERAL MEETING SHOULD BE HELD DURING
‘BUSINESS HOURS’ ............................................................... 516
11.21 CONTINUATION OF MEETING AFTER BUSINESS HOURS ............... 517
11.22 FIXING TIME OF ANNUAL GENERAL MEETING BY ARTICLES
OR RESOLUTION ................................................................. 517
[F] DAY ON WHICH AN ANNUAL GENERAL MEETING
SHOULD BE HELD
11.23 ANNUAL GENERAL MEETING SHOULD BE HELD ON ANY
DAY EXCEPT PUBLIC HOLIDAY .............................................. 518
11.24 MEANING OF ‘PUBLIC HOILDAY’ .............................................. 518
[G] PLACE OF ANNUAL GENERAL MEETING
11.25 PERIPHERY FOR PLACE OF ANNUAL GENERAL MEETING .............. 519
11.26 CAN COURT GRANT RELIEF AS REGARDS PLACE? ....................... 520
11.27 CAN A COMPANY HOLD AGM AT A PLACE OUTSIDE INDIA? .... 520
[H] EXEMPTION FROM HOLDING ANNUAL GENERAL MEETING
11.28 CENTRAL GOVERNMENT’S POWER TO GRANT EXEMPTION .......... 522
11.29 EXEMPTION TO COMPANIES LICENSED UNDER SECTION 25 ........ 523
[I] DEFAULT IN HOLDING ANNUAL GENERAL MEETING
11.30 PENALTY ................................................................................. 523
11.31 MCA’S ADVICE ....................................................................... 524
11.32 JUDICIAL VIEW ....................................................................... 525
[J] COMPANY LAW BOARD’S POWER TO ORDER CALLING OF ANNUAL
GENERAL MEETING
11.33 STATUTORY PROVISION ............................................................. 526
11.34 EXTENT OF POWERS UNDER SECTION 167 ............................... 526
11.35 POWER EXERCISABLE ‘NOTWITHSTANDING ANYTHING IN
THE ACT OR IN ARTICLES’ ................................................. 529
11.36 EXCLUSIVE POWER OF CLB ..................................................... 530
11.37 ONE-MEMBER QUORUM ........................................................... 531
11.38 PROCEDURE FOR MAKING AN APPLICATION TO THE
COMPANY LAW BOARD FOR CALLING ANNUAL
GENERAL MEETING ............................................................. 532
11.39 ACTIVITY SCHEDULE FOR ANNUAL GENERAL MEETING ............... 533
11.40 CHECKLIST FOR THE CHAIRPERSON OF ANNUAL
GENERAL MEETING FOR THE CONDUCT OF ANNUAL
GENERAL MEETING ............................................................. 543
11.41 MCA’S CLARIFICATIONS ........................................................... 546
CHAPTER 12
Extraordinary General Meeting .................................................557
[A] BOARD’S POWER TO CALL EXTRAORDINARY
GENERAL MEETING
12.1 PROVISIONS IN ARTICLES .......................................................... 557
12.2 FREQUENCY AND TIME LIMIT FOR EXTRAORDINARY
GENERAL MEETING ............................................................. 558
12.3 NATURE OF BUSINESS TRANSACTED AT EXTRAORDINARY
GENERAL MEETING ............................................................. 558
12.4 DIFFERENCE BETWEEN ORDINARY BUSINESS AND ORDINARY
RESOLUTION ....................................................................... 559
12.5 TIME, DAY AND PLACE OF EXTRAORDINARY GENERAL
MEETING ............................................................................ 559
12.6 INJUNCTION AGAINST EXTRAORDINARY GENERAL MEETING ......... 559
[B] PROCEDURE FOR CALLING EXTRAORDINARY GENERAL
MEETING BY BOARD
[C] POWER OF COMPANY LAW BOARD TO ORDER CALLING OF A
GENERAL MEETING
12.7 STATUTORY PROVISION ............................................................. 561
12.8 LEGISLATIVE HISTORY OF SECTION 186 .................................... 562
12.9 SCOPE OF COMPANY LAW BOARD’S POWER ................................ 562
12.10 LIMITATION OF CLB’S POWER .................................................. 563
12.11 DIFFERENCE BETWEEN SECTION 186 AND SECTION 167 ........... 564
12.12 CAN CIVIL COURT ORDER CALLING EXTRAORDINARY GENERAL
MEETING? ............................................................................... 565
[D] PRINCIPLES GOVERNING EXERCISE OF POWER UNDER
SECTION 186
12.13 BROAD CRITERIA ...................................................................... 567
12.14 CIRCUMSTANCES AS TO IMPRACTICABILITY OF CALLING
A MEETING ........................................................................ 568
12.15 POWER TO BE EXERCISED WITH CAUTION AND CARE ................ 570
12.16 DEADLOCK AS A GROUND FOR ORDERING A MEETING ............. 571
[E] SCOPE OF COMPANY LAW BOARD’S JURISDICTION
12.17 COMPLICATED QUESTIONS ........................................................ 574
12.18 ANCILLARY AND CONSEQUENTIAL DIRECTIONS .......................... 575
12.19 DIRECTION FOR VOTING BY BALLOT ........................................ 575
12.20 DIRECTION FOR ONE-MEMBER QUORUM ................................... 576
12.21 DEVIATION FROM CLB’S DIRECTIONS ...................................... 577
[F] MAKING AN APPLICATION TO THE COMPANY LAW BOARD
[G] EXTRAORDINARY GENERAL MEETING
REQUISITIONED BY MEMBERS
12.22 MEMBERS’ RIGHT AS TO REQUISITIONING EXTRAORDINARY
GENERAL MEETING ............................................................. 579
12.23 WHO IS ELIGIBLE TO REQUISITION A MEETING ........................ 580
12.24 ELIGIBILITY CRITERION TO BE SATISFIED FOR EACH
RESOLUTION SEPARATELY ...................................................... 581
[H] MANNER OF MAKING A REQUISITION
12.25 CONTENTS OF REQUISITION .................................................... 582
12.26 MEANING OF ‘VALID REQUISITION’ .......................................... 583
12.27 SIGNING OF REQUISITION ......................................................... 588
[I] BOARD’S DUTY TO CALL A MEETING
12.28 PERIOD WITHIN WHICH BOARD MUST CONVENE MEETING ....... 589
12.29 PRESUMPTION AS TO DATE OF REQUISITION ............................. 592
12.30 BOARD RESOLUTION FOR CALLING A MEETING ......................... 592
12.31 NOTICE OF REQUISITIONED MEETING ...................................... 593
12.32 NO RESOLUTION DIFFERENT THAN SET OUT IN
REQUISITION CAN BE PROPOSED AT THE MEETING .............. 593
12.33 NO EXPLANATORY STATEMENT REQUIRED .................................. 594
12.34 PLACE OF MEETING ................................................................ 595
12.35 INTIMATION TO STOCK EXCHANGE ........................................... 596
12.36 RESOLUTION AT A GENERAL MEETING ..................................... 596
12.37 FILING OF SPECIAL RESOLUTION ............................................... 596
[J] THE REQUISITIONIST(S)’ RIGHT TO HOLD EXTRAORDINARY
GENERAL MEETING BY THEMSELVES
12.38 REQUISITIONIST’S RIGHT TO HOLD EXTRAORDINARY
GENERAL MEETING BY THEMSELVES ..................................... 596
12.39 REQUIREMENT OF SECTION 188 NEED NOT BE
COMPLIED WITH ................................................................. 597
12.40 PERIOD LIMIT FOR HOLDING EXTRAORDINARY GENERAL
MEETING BY REQUISITIONIST(S) ........................................... 598
12.41 NOTICE OF EXTRAORDINARY GENERAL MEETING ....................... 598
12.42 PLACE WHERE MEETING CAN BE HELD ................................... 599
12.43 PROCEEDINGS AT EXTRAORDINARY GENERAL MEETING
HELD BY REQUISITIONIST(S) ................................................ 599
12.44 RESOLUTIONS AT THE MEETING .............................................. 599
12.45 FILING OF SPECIAL RESOLUTION ............................................... 600
12.46 REQUISITIONIST’S RIGHT TO REIMBURSEMENT OF EXPENSES ....... 600
CHAPTER 13
Meetings of Board of Directors and Committees
of Directors ..........................................................................601
[A] NEED FOR DIRECTORS’ MEETINGS
13.1 POWERS OF DIRECTORS ........................................................... 601
13.2 STATUTORY PROVISION AS TO DIRECTORS’ POWERS OF
MANAGEMENT .................................................................... 602
13.3 DIVISION OF POWERS BETWEEN DIRECTORS
AND SHAREHOLDERS ............................................................ 605
13.4 DIRECTORS MUST ACT COLLECTIVELY AT MEETINGS ................ 611
13.5 CAN BOARD MEETINGS BE HELD BY TELE-CONFERENCING
OR VIDEO-CONFERENCING? .................................................. 612
[B] ATTENDANCE AT BOARD MEETINGS
13.6 THE BOARD MUST BE PROPERLY CONSTITUTED ........................ 612
13.7 DIRECTOR’S DUTY TO ATTEND BOARD MEETINGS .................... 613
13.8 CAN A DIRECTOR APPOINT A PROXY FOR BOARD MEETING? ...... 613
13.9 LEAVE OF ABSENCE ................................................................. 615
13.10 VACATION OF OFFICE FOR ABSENTING FROM
BOARD MEETINGS ............................................................... 617
[C] NUMBER OF BOARD MEETINGS
13.11 MINIMUM NUMBER OF MEETINGS ............................................ 620
13.12 EVOLUTION OF SECTION 285 .................................................. 620
13.13 INTERVAL BETWEEN TWO BOARD MEETINGS ............................. 622
13.14 INTERVAL BETWEEN TWO BOARD MEETINGS IN THE
CASE OF LISTED COMPANIES ................................................ 623
13.15 NON-APPLICABILITY OF SECTION 285 ....................................... 623
13.16 WHO CAN CONVENE A BOARD MEETING? ............................... 624
[D] NOTICE OF BOARD MEETING
13.17 NOTICE MUST BE GIVEN TO CONVENE A
BOARD MEETING ................................................................ 624
13.18 NOTICE MUST BE GIVEN TO EVERY DIRECTOR ........................ 628
13.19 NOTICE MUST BE IN WRITING ................................................ 629
13.20 CONSEQUENCE OF ABSENCE OF NOTICE OR
PROPER NOTICE .................................................................. 630
13.21 NOTICE MUST BE OF A REASONABLE LENGTH OF TIME ........... 634
13.22 STANDING NOTICE ................................................................... 635
13.23 HOW NOTICE SHOULD BE SENT .............................................. 636
13.24 WAIVER OF NOTICE ................................................................ 637
13.25 INFORMAL MEETING MAY BE TREATED AS A FORMAL
MEETING ............................................................................ 638
[E] AGENDA
13.26 IT IS NOT MANDATORY TO PROVIDE AGENDA .......................... 639
13.27 THE CORPORATE GOVERNANCE VIEW........................................ 642
13.28 ‘ANY OTHER BUSINESS WITH THE PERMISSION OF
THE CHAIR’ ........................................................................ 644
13.29 CONTENTS OF AGENDA ........................................................... 646
13.30 DIVISION OF AGENDA .............................................................. 648
13.31 NON-STATUTORY ITEMS ........................................................... 651
[F] RATIFICATION OF ACTIONS AT SUBSEQUENT BOARD MEETING
13.32 MEANING OF RATIFICATION ..................................................... 652
13.33 BOARD CAN RATIFY UNAUTHORISED ACT OF A DIRECTOR
OR OFFICER OF THE COMPANY ........................................... 654
13.34 NO FORMAL RESOLUTION IS NECESSARY FOR RATIFICATION ....... 657
13.35 RATIFICATION OF AN INVALID RESOLUTION WHERE
ORIGINAL RESOLUTION IS INVALID ........................................ 657
13.36 RATIFICATION BY SHAREHOLDERS OF IRREGULAR
RESOLUTION OF BOARD ...................................................... 659
13.37 EXERCISE OF A POWER AT BOARD MEETING WHERE IT IS
TO BE EXERCISED AT GENERAL MEETING: THE RULE
OF ‘INDOOR MANAGEMENT’ ................................................ 661
[G] QUORUM FOR BOARD MEETINGS
13.38 MEANING OF QUORUM ........................................................... 662
13.39 STATUTORY PROVISION ............................................................. 662
13.40 STATUTORY QUORUM ............................................................... 663
13.41 HOW TO CALCULATE ‘TOTAL STRENGTH’ AND
‘ONE-THIRD’? ..................................................................... 664
13.42 EVOLUTION OF SECTION 287 .................................................. 664
13.43 SECTION 287 LAYS DOWN MINIMUM QUORUM ......................... 665
13.44 CONSEQUENCES OF TRANSACTION OF BUSINESS
WITHOUT QUORUM ............................................................ 666
13.45 SPECIAL REQUIREMENT UNDER ARTICLES OF ASSOCIATION
OR SHAREHOLDERS AGREEMENT ........................................... 668
13.46 WHETHER ONE DIRECTOR CAN BE COUNTED TWICE
IN QUORUM ....................................................................... 669
13.47 ONE DIRECTOR CANNOT CONSTITUTE A QUORUM ................... 669
13.48 EFFECT OF DECISION OF MAJORITY WHERE QUORUM
NOT FIXED ......................................................................... 669
13.49 IRREGULARITY IN MEETING DOES NOT AFFECT
THIRD PARTIES .................................................................... 670
13.50 REDUCTION IN THE NUMBER OF DIRECTORS BELOW
THE QUORUM .................................................................... 671
[H] DISINTERESTED QUORUM
13.51 MEANING OF ‘DISINTERESTED QUORUM’ .................................. 671
13.52 PROHIBITIONS AGAINST INTERESTED DIRECTOR .......................... 673
13.53 THE PURPOSE OF SECTION 300 ............................................... 674
13.54 PRINCIPLES UNDERLYING SECTION 300 ..................................... 676
13.55 ABSENCE OF DISINTERESTED QUORUM ..................................... 679
13.56 RECOURSE WHEN DISINTERESTED QUORUM NOT PRESENT ........ 680
[I] ADJOURNMENT OF MEETING FOR WANT OF QUORUM
13.57 MEETING TO BE ADJOURNED WHEN QUORUM NOT
AVAILABLE AT A MEETING ................................................... 681
13.58 NOTICE OF AN ADJOURNED MEETING ..................................... 682
13.59 QUORUM AT ADJOURNED MEETING .......................................... 682
[J] DAY, TIME AND PLACE OF BOARD MEETING
13.60 DAY ON WHICH BOARD MEETING CAN BE HELD .................... 683
13.61 TIME AT WHICH BOARD MEETING CAN BE HELD .................... 683
13.62 PLACE OF BOARD MEETING ..................................................... 684
[K] RESOLUTIONS AND VOTING AT BOARD MEETINGS
13.63 HOW DECISIONS ARE TO TAKEN AT BOARD MEETINGS ............. 685
13.64 THE MAJORITY VOTE RULE ..................................................... 686
13.65 FETTERS ON DIRECTOR’S VOTING RIGHTS ................................ 688
13.66 FETTERS ON VOTING RIGHTS UNDER SHAREHOLDERS’
AGREEMENT ........................................................................ 690
13.67 ENFORCEABILITY OF PROVISIONS IN THE SHAREHOLDERS’
AGREEMENT REGARDING BOARD MEETINGS ........................... 691
13.68 PROHIBITION AGAINST VOTING BY INTERESTED DIRECTOR ......... 703
13.69 WHETHER VOTE IS VOID OR VOIDABLE ................................... 706
13.70 APPLICABILITY OF SECTION 300 IN CERTAIN SPECIFIC CASES ....... 707
[L] CHAIRMAN OF THE BOARD
13.71 APPOINTMENT ......................................................................... 709
13.72 CHAIRMAN’S DUTIES, RIGHTS AND POWERS GENERALLY ............. 712
13.73 CHAIRMAN’S POWER TO ADJOURN MEETING .............................. 716
13.74 CHAIRMAN’S CASTING VOTE ..................................................... 721
[M] CIRCULAR RESOLUTION
13.75 STATUTORY PROVISION ............................................................. 723
13.76 DIRECTORS MAY TAKE DECISIONS BY CIRCULAR
RESOLUTION ....................................................................... 724
13.77 HOW CIRCULAR RESOLUTION IS PASSED .................................... 724
13.78 RECORDING OF CIRCULAR RESOLUTIONS ................................... 728
13.79 MATTERS WHICH CANNOT BE DECIDED BY CIRCULAR
RESOLUTION ....................................................................... 728
[N] MEETINGS OF COMMITTEES OF DIRECTORS
13.80 MEANING OF ‘COMMITTEE’ ..................................................... 729
13.81 PROVISIONS OF THE ACT: COMPANIES CONCERNING
COMMITTEES OF DIRECTORS ............................................... 730
13.82 DELEGATION OF POWERS BY THE BOARD TO COMMITTEES ....... 730
13.83 COMPOSITION OF COMMITTEES ................................................ 737
13.84 SCOPE OF COMMITTEE’S POWERS ............................................. 739
13.85 LIMIT ON THE NUMBER OF COMMITTEES ON WHICH
A DIRECTOR OF A LISTED COMPANY CAN BE A MEMBER ..... 740
[O] AUDIT COMMITTEE
13.86 AUDIT COMMITTEE UNDER THE COMPANIES ACT ...................... 741
13.87 DEPARTMENT OF COMPANY AFFAIRS’ CIRCULARS ON
SECTION 292A ................................................................... 744
13.88 AUDIT COMMITTEE UNDER CLAUSE 49 OF THE LISTING
AGREEMENT ........................................................................ 746
13.89 COMPOSITION OF AUDIT COMMITTEE ....................................... 749
13.90 CHAIRPERSON OF AUDIT COMMITTEE........................................ 752
13.91 ELIGIBILITY FOR AUDIT COMMITTEE MEMBERSHIP ...................... 753
13.92 MEETINGS OF AUDIT COMMITTEE ............................................ 753
13.93 QUORUM ................................................................................ 754
13.94 OTHER REGULATIONS APPLICABLE TO AUDIT COMMITTEE .......... 754
13.95 IMPORTANCE OF AUDIT COMMITTEE ......................................... 757
13.96 ROLE OF AUDIT COMMITTEE ................................................... 758
[P] REMUNERATION COMMITTEE
[Q] INVESTOR GRIEVANCE REDRESSAL COMMITTEE
[R] COMMITTEE UNDER ESOS REGULATIONS
CHAPTER 14
Minutes of Meetings ..................................................................763
[A] MINUTES OF BOARD AND COMMITTEE MEETINGS
14.1 STATUTORY PROVISIONS AS TO MINUTES ................................... 763
14.2 EVOLUTION OF SECTION 193 .................................................. 765
14.3 STATUTORY OBLIGATION TO KEEP MINUTES .............................. 766
14.4 MANDATORY REQUIREMENTS REGARDING MINUTES .................... 767
14.5 CONTENTS OF MINUTES OF MEETINGS ................................... 768
14.6 CHAIRMAN’S DISCRETION AS TO CONTENTS OF MINUTES ......... 770
14.7 SIGNING OF MINUTES .............................................................. 770
14.8 CONFIRMATION OF MINUTES .................................................... 773
14.9 RESPONSIBILITY TO KEEP MINUTES ........................................... 774
14.10 ALTERATION OF MINUTES ........................................................ 774
14.11 PLACE OF KEEPING MINUTES ................................................... 775
[B] METHOD OF KEEPING BOOKS OF MINUTES
14.12 WHETHER MINUTES SHOULD BE RECORDED IN
BOUND BOOKS ................................................................... 776
14.13 JUDICIAL VIEW ON LOOSE-LEAF MINUTES ................................. 777
[C] EVIDENTIARY VALUE OF MINUTES
14.14 MINUTES AS EVIDENCE OF MEETINGS ..................................... 779
14.15 PRESUMPTION TO BE DRAWN FROM MINUTES ........................... 782
[D] INSPECTION OF MINUTES
14.16 STATUTORY RIGHT OF INSPECTION ........................................... 787
14.17 INSPECTION OF MINUTE OF BOARD MEETINGS ......................... 788
14.18 MEMBER’S RIGHT TO INSPECT MINUTES OF
GENERAL MEETING ............................................................. 789
14.19 PETITION TO COMPANY LAW BOARD FOR AN ORDER
DIRECTING INSPECTION/EXTRACT/COPY ................................ 789
14.20 SPECIMEN MINUTES ................................................................. 790
CHAPTER 15
Class Meetings ...........................................................................797
[A] CLASSES OF SHARES
15.1 MEANING OF ‘CLASSES OF SHARES’ .......................................... 797
15.2 PREFERENCE SHARE CAPITAL ...................................................... 798
15.3 KINDS OF PREFERENCE SHARES ................................................. 798
15.4 EQUITY SHARE CAPITAL ............................................................ 801
15.5 EQUITY SHARES WITH DIFFERENTIAL RIGHTS ............................. 801
15.6 MEANING OF ‘CLASS RIGHTS’ .................................................. 802
15.7 HOW CLASS RIGHTS ARE CREATED ........................................... 805
[B] VARIATION OF CLASS RIGHTS
15.8 STATUTORY PROVISIONS ............................................................ 805
15.9 MEANING OF ‘VARIATION OF CLASS RIGHTS’ ............................ 805
15.10 CASES ON ‘WHAT AMOUNTS TO VARIATION’? ........................... 808
[C] METHODS BY WHICH VARIATION MAY BE EFFECTED
15.11 AUTHORITY FOR VARIATION OF CLASS RIGHTS .......................... 814
15.12 EXPRESS OR IMPLIED POWER TO ALTER RIGHTS ......................... 815
15.13 MODEL PROVISIONS IN ARTICLES .............................................. 815
15.14 TWO ALTERNATIVE METHOD FOR APPROVAL OF
VARIATION .......................................................................... 817
15.15 PROCEDURE FOR OBTAINING CONSENT OF SHAREHOLDERS
WITHOUT HOLDING A MEETING ......................................... 820
15.16 PROCEDURE FOR OBTAINING SANCTION OF SHAREHOLDERS
BY SPECIAL RESOLUTION ...................................................... 822
[D] PROVISIONS APPLICABLE TO CLASS MEETINGS
15.17 APPLICABILITY OF SECTIONS 171 TO 186 IN THE CASE OF
CLASS MEETINGS ................................................................ 823
[E] RIGHTS OF DISSENTIENT SHAREHOLDERS
15.18 WHO CAN MAKE A PETITION TO COURT TO CANCEL
VARIATION .......................................................................... 825
15.19 TIME LIMIT FOR MAKING APPLICATION ..................................... 827
15.20 COURT’S POWER ON APPLICATION ............................................ 827
15.21 PROVISION IN COMPANIES COURT RULES ................................... 828
15.22 PROCEDURE REGARDING PETITION TO HIGH COURT BY
DISSENTING SHAREHOLDERS ................................................. 829
CHAPTER 16
Meetings in Respect of Compromise, Arrangement
and Amalgamation ...............................................................845
[A] THE CONCEPTS OF ‘COMPROMISE’, ‘ARRANGEMENT’ AND
‘RECONSTRUCTION’
16.1 MEANING OF ‘COMPROMISE’ AND ‘ARRANGEMENT’ .................... 845
16.2 MEANING OF ‘RECONSTRUCTION’ AND ‘AMALGAMATION’ ........... 847
16.3 COMPANIES ELIGIBLE TO GO IN FOR COMPROMISE
OR ARRANGEMENT .............................................................. 850
[B] SANCTION OF MEMBERS AND CREDITORS OF A COMPANY
TO A SCHEME OF COMPROMISE OR ARRANGEMENT
16.4 BOARD’S APPROVAL .................................................................. 851
16.5 COURT’S DIRECTIONS FOR CONVENING MEETINGS .................... 851
16.6 CAN A COURT DISPENSE WITH MEETINGS? .............................. 853
16.7 MEANING OF ‘CLASS OF MEMBERS/CREDITORS’ ....................... 856
[C] NOTICE AND EXPLANATORY STATEMENT
16.8 NOTICE OF MEETING ............................................................. 861
16.9 ESTOPPEL ................................................................................ 865
16.10 REQUIREMENT AS REGARDS EXPLANATORY STATEMENT................ 865
16.11 DIFFERENCE BETWEEN DISCLOSURE UNDER SECTION 393
AND SECTION 173 ............................................................. 868
16.12 CONNOTATION OF ‘TERMS OF THE COMPROMISE OR
ARRANGEMENT AND EXPLAINING ITS EFFECT’ ........................ 869
16.13 ALTERATION IN MATERIAL INTEREST ......................................... 872
[D] SANCTION TO A SCHEME AT MEETINGS OF MEMBERS
AND CREDITORS
16.14 APPROVAL OF SCHEME BY MEMBERS AND CREDITORS ................ 874
16.15 PROXIES AND VOTING .............................................................. 876
16.16 SCHEME TO BE APPROVED BY SPECIAL MAJORITY ...................... 878
16.17 REPORT OF THE RESULT OF MEETING ..................................... 882
16.18 REQUIREMENTS UNDER LISTING AGREEMENT ............................. 883
16.19 SANCTION OF MEMBERS AND CREDITORS OF THE
COMPANIES TO A SCHEME OF AMALGAMATION OF
TWO OR MORE COMPANIES ................................................ 884
16.20 MODIFICATION TO SCHEME AFTER IT IS SANCTIONED
BY COURT .......................................................................... 885
CHAPTER 17
Meetings of Debenture Holders ................................................895
[A] MEANING AND KINDS OF DEBENTURE
17.1 MEANING OF ‘DEBENTURE’ ..................................................... 895
17.2 DIFFERENCE BETWEEN SHARE AND DEBENTURE ......................... 897
17.3 DEBENTURE AND DEBENTURE STOCK ....................................... 899
17.4 BONDS ................................................................................... 900
17.5 KINDS OF DEBENTURES ........................................................... 900
17.6 BEARER DEBENTURES ............................................................... 901
17.7 PERPETUAL DEBENTURES .......................................................... 902
17.8 POWER TO ISSUE DEBENTURES ................................................. 904
[B] RIGHTS OF DEBENTURE HOLDERS
17.9 PROTECTION OF DEBENTURE HOLDERS’ INTERESTS ................... 904
17.10 RIGHTS OF DEBENTURE HOLDERS GENERALLY .......................... 905
17.11 RIGHT TO OBTAIN COPIES OF ANNUAL ACCOUNTS ................... 910
17.12 RIGHT TO OBTAIN COPIES OF AND INSPECT TRUST DEED ........ 911
17.13 RIGHTS OF DEBENTURE HOLDERS AS CONFERRED BY OFFER
DOCUMENT ........................................................................ 911
17.14 RIGHT OF DEBENTURE HOLDER TO INSPECT
COMPANY’S BOOKS .............................................................. 913
[C] DEBENTURE TRUST AND TRUST DEED
17.15 MEANING OF ‘DEBENTURE TRUST DEED’ ................................. 914
17.16 STATUTORY OBLIGATION AS TO DEBENTURE TRUST DEED ........ 915
17.17 ISSUE OF SECURED DEBENTURES AND CREATION
OF SECURITY ...................................................................... 916
17.18 CONTENTS OF A DEBENTURE TRUST DEED .............................. 919
17.19 EXECUTION OF TRUST DEED AND STAMP DUTY ....................... 921
17.20 REGISTRATION OF CHARGE SECURING DEBENTURES .................... 923
17.21 APPOINTMENT OF DEBENTURE TRUSTEES AND DUTIES
OF DEBENTURE TRUSTEES ................................................... 923
17.22 COMPULSORY APPOINTMENT OF DEBENTURE TRUSTEE ............... 924
17.23 DISQUALIFICATIONS OF DEBENTURE TRUSTEES ........................... 925
17.24 POWER TO FILE PETITION BEFORE THE COMPANY
LAW BOARD ........................................................................ 925
17.25 DUTIES OF DEBENTURE TRUSTEES ............................................ 926
17.26 LIABILITY OF TRUSTEES FOR DEBENTURE HOLDERS ................... 926
[D] MEETINGS OF DEBENTURE HOLDERS
17.27 APPLICABILITY OF SECTIONS 171 TO 186 TO DEBENTURE
HOLDERS’ MEETINGS .......................................................... 927
17.28 DEBENTURES WITH VOTING RIGHTS NOT PERMISSIBLE .............. 928
CHAPTER 18
Meetings in Respect of Winding-up of a Company ....................945
[A] MEETINGS IN RESPECT OF WINDING-UP BY COURT
18.1 MEANING OF ‘WINDING-UP’ .................................................... 945
18.2 MEETINGS TO ASCERTAIN WISHES OF CREDITORS OR
CONTRIBUTORIES ................................................................. 946
[B] CONVENING MEETINGS OF MEMBERS/CREDITORS
18.3 NOTICE .................................................................................. 947
18.4 PLACE AND TIME OF MEETING ................................................ 948
18.5 NOTICE TO OFFICERS .............................................................. 949
18.6 PROOF OF DESPATCH OF NOTICE ............................................ 949
18.7 MEETINGS AT THE INSTANCE OF CREDITOR
OR CONTRIBUTORY ............................................................. 949
[C] CONDUCT OF MEETING
18.8 CHAIRMAN............................................................................... 950
18.9 RESOLUTIONS AT CREDITORS MEETING .................................... 950
18.10 RESOLUTIONS AT CONTRIBUTORIES MEETING ............................ 951
18.11 FILING OF RESOLUTIONS ........................................................ 951
18.12 ADJOURNMENTS ...................................................................... 951
18.13 QUORUM ................................................................................ 951
18.14 CREDITORS’ VOTING RIGHT .................................................... 952
18.15 MINUTES OF MEETING ........................................................... 953
18.16 REPORT OF MEETING .............................................................. 953
18.17 PROXIES .................................................................................. 954
[D] MEETINGS IN MEMBERS’ VOLUNTARY WINDING-UP
18.18 RESOLUTION FOR VOLUNTARY WINDING-UP .............................. 954
18.19 DECLARATION OF SOLVENCY .................................................... 956
18.20 MCA’S VIEWS ........................................................................ 957
18.21 PUBLICATION OF RESOLUTION FOR VOLUNTARY
WINDING-UP ....................................................................... 959
18.22 PROVISIONS APPLICABLE TO A MEMBERS’ VOLUNTARY
WINDING-UP ....................................................................... 960
[E] MEETINGS IN CREDITORS’ VOLUNTARY WINDING-UP
18.23 MEETINGS OF CREDITORS ........................................................ 960
18.24 PROVISIONS APPLICABLE TO A CREDITORS’ VOLUNTARY
WINDING-UP ....................................................................... 960
APPENDIX
Specimen Resolutions ................................................................981
Index ............................................................................................... 1053

Dr KR Chandratre is a practising company secretary with over 25 years’ experience. He has an impressive academic background, and holds a Master’s degree in commerce, an LL B and LL D from the University of Pune. He was the President of the Institute of Company Secretaries of India during 1996 and was also the Vice-President for two years. He was a member of the Working Group on Redrafting of the Companies Act, 1956 constituted by the Government of India in August 1996, to draft a new Companies Act to be substituted for the Companies Act 1956, which resulted in the Companies Bill, 1997. He also served as the Chairman of the Committee on ‘Delisting of Securities’ constituted by SEBI in March 1997. He was the President of the Pune Stock Exchange, Pune, India, during April 2004 to April 2005. Dr. Chandratre has so far authored over 1000 articles and 24 books on various subjects in the areas of Corporate Laws and Corporate Secretarial Practice. He has also addressed more than 300 seminars, workshops, conferences and conventions besides contributing papers at national and international levels.