List the businesses that are required to be transacted by means of voting only though postal ballot as provided under the Companies Act, 2013 and the Rules made thereunder.

CS Professional · Advanced Company Law and Practice · PYQS · December 2021
List the businesses that are required to be transacted by means of voting only though postal ballot as provided under the Companies Act, 2013 and the Rules made thereunder.

Answer & Explanation:

Rule 22 (16) of the Companies (Management and Administration) Rules, 2014 provides that pursuant to Clause (a) of Sub- section (1) of Section 110 the following items of business shall be transacted only by means of voting through postal ballot: alteration of the objects clause of the memorandum and in the case of the company in existence immediately before the commencement of the Act, alteration of the main objects of the memorandum; alteration of articles of association in relation to insertion or removal of provisions which, under Section 2(68) are required to be included in the articles of the company in order to constitute it a private company; change in place of registered office outside the local limits of any city, town or village as per Section 12 (5); change in objects for which a company has raised money from public through prospectus and still has any unutilized amount out of the money so raised under Section 13(8), issue of shares with differential rights as to voting or dividend or otherwise under Sub-clause (ii) of Clause (a) of Section 43; variation in the rights attached to a class of shares or debentures or other securities as specified under Section 48; buyback of shares by a company under Section 68(1); election of a director under Section 151; sale of the whole or substantially the whole of an undertaking of a company as specified under Sub-clause (a) of Sub-section (1) of Section 180; giving loans or extending guarantee or providing security in excess of the limit specified under Section 186(3). However, any aforesaid items of business as mentioned above, required to be transacted by means of postal ballot, 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. Further, one person companies and other companies having members upto 200 are not required to transact any business through postal ballot.

Topics: General Meetings

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