Cautious Ltd, an unlisted company with 1200 shareholders proposes to extend loans and make investments in excess of the limits prescribed under Sec 186(3) of the Act. As part of the compliance requirements, the Company i

As per Rule 22(16) of the Companies (Management & Administration) Rules 2014, it is mandatory for a company with more than 200 members to transact the business of authorizing provision of loans or guarantees in excess of the limit specified under Section 186(3) of the Act only through postal ballot and not by show of hands. Rule 20 regarding voting by electronic means shall apply, as far as applicable, mutatis mutandis to the postal ballot in respect of the voting by electronic means. Under the circumstances, it is mandatory for Cautious Ltd, being an unlisted company, with 1200 members to conduct a poll and electronic means to approve the lending under Section 186(3) of the Act.