Legal Question in Civil Litigation in India

can a member of a company be restricted from voting under the companies act. under any other section apart from section 181.


Asked on 5/30/12, 4:43 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

30.05.2012

Dear Sir / Madam,

A company is not debarred from entering into a contract in which a Director is interested. It only requires that such interest be disclosed. An interested Director should not take part in the discussion on the matter of his interest. His presence shall not be counted for the purpose of quorum for that item. He shall not vote on that matter. If he does vote, his vote shall be void. Non-disclosure of interest makes the contract avoidable and not void.

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Regards,

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Answered on 5/30/12, 6:16 am
ranganathan raghavachari R.Ranganathan & Associates

For what purpose you need an answer. Is it academic or some problem in your company.

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Answered on 5/31/12, 6:22 am


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