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CS Executive · Company Law and Practice · General Meetings

Meera Pharma Ltd wants to move an item of business by postal ballot instead of holding a general meeting. Which item can it transact by postal ballot at its own option under the Companies Act, 2013?

The company may use postal ballot for a special business item where neither directors nor auditors have a right to be heard. Ordinary business and matters in which directors or auditors must be heard at the meeting cannot be moved by postal ballot at the company's option.

  1. AConsideration of financial statements as ordinary business at the annual general meeting
  2. BRemoval of an auditor, where the auditor has a right to be heard at the meeting
  3. CRemoval of a director, where the director has a right to be heard at the meeting
  4. DA special business item on which neither directors nor auditors have a right to be heardCorrect

Explanation

Section 110(1)(b) lets a company transact by postal ballot any item of business other than ordinary business and any business in respect of which directors or auditors have a right to be heard. Only the special business item that is not about hearing rights qualifies. The other options are ordinary business or business carrying a right to be heard.

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