Skip to content

CS Executive · Company Law and Practice · General Meetings

Zenith Textiles Ltd passed a resolution by postal ballot, and the requisite majority assented to it. Under the Companies Act, 2013, what is the legal effect of that assent?

A resolution assented to by the requisite majority through postal ballot is deemed to have been duly passed at a general meeting convened for that purpose. It needs no later ratification and no Registrar approval, because the Act gives postal ballot the same effect as a meeting.

  1. AThe resolution is deemed to have been duly passed at a general meeting convened in that behalfCorrect
  2. BThe resolution is only provisional until ratified at the next annual general meeting
  3. CThe resolution takes effect only after the Registrar approves it
  4. DThe resolution is valid only for the Board and not for the members

Explanation

Section 110(2) provides that a resolution assented to by the requisite majority by postal ballot is deemed to have been duly passed at a general meeting convened in that behalf. No ratification at a later meeting or approval by the Registrar is required, so the other options misstate the law.

Did you get it right without looking?

One question tells you little. A timed set on General Meetings shows your real accuracy, how long you take and where you lose marks.

Practise General MeetingsFree diagnostic mock

More General Meetings questions