The registered office of Poornabodha Limited is located in the city of Udupi in Karnataka. In a matter pertaining to the removal of a director, a notice was despatched by the company from a post office in Hassan in Karna
CS Professional · Drafting, Pleadings and Appearances · PYQS · June 2024
The registered office of Poornabodha Limited is located in the city of Udupi in Karnataka. In a matter pertaining to the removal of a director, a notice was despatched by the company from a post office in Hassan in Karnataka. A shareholder has contended that the notice is not valid. Explain if the contention of the shareholder is correct.
Answer & Explanation:
For the removal of a director, the following requirements are to be adhered to: A special notice shall be required of any resolution, to remove a director. On receipt of notice of a resolution to remove a director under section 169 of the Companies Act, 2013 the company shall forthwith send a copy thereof to the director concerned, and the director, whether or not he is a member of the company, shall be entitled to be heard on the resolution at the meeting. In the given situation the requirements are fulfilled but the notice is not sent from the place, where registered office is situated (Udipi in Karnataka) but was sent from some other place (Hassan in Karnataka). The facts of the given situation are similar to the case of Manmohan Singh Kohli (Capt.) v. Venture India Properties P. Ltd. In this case, it was decided that the dispatch of notice is not bad in law because it is sent from some other post office which is not situated near to the company's registered or working office. In view of the above, it can be said that the contention of the shareholder of Poornabodha Limited is not correct.
Topics: Company Law
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