Short notice

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Querist : Anonymous

Querist : Anonymous (Querist)

28 August 2013 Dear Sir,
Kindly let me know the minimum and maximum no of days before we can give notice to share holder for passing ordinary and extraordinary resolution in case of both Limited and private limited company
Also please give me information about short notice

Thanks

Ajay Mishra

Ajay Mishra (Expert)

29 August 2013 Hi

For this, you check what your article says on short notice. The CA, 1956 has not specified time period, so check your companies Article.

Ajay Mishra

Ajay Mishra (Expert)

29 August 2013 Calling of a general meeting at shorter notice:

Section 171(2) of the Act, provides that a general meeting of a company can be called by giving shorter notice of less than 21 days, subject to the fulfillment of the following conditions:—

(i) In the case of an annual general meeting, it should be consented by all the members entitled to vote thereat; and

(ii) In the case of any other meeting of members, it should be consented by members holding not less than 95% of the paid-up share capital, having a right to vote at the meeting. In the case of a company not having a share capital, the proposal must be approved by members holding not less than 95% of the total voting power.
Members shall give their consent in the prescribed Form 22A for convening a general meeting by shorter notice. The consent shall be obtained from the members entitled to attend the meeting either before or at the time of the meeting.

Sub-section (2) of section 171 is mandatory and consents means 'consent of members entitled to attend and vote' and 'not of members entitled to vote and present'. [N.V.R. Nagappa Chettiar v Madras Race Club (1949) 19 Comp Cas 175 (Mad)].
Even though consent of shareholders to shorter notice for meeting at which a special resolution is passed, is not obtained prior to meeting, the consent obtained thereafter would validate the resolution. [Parikh Engg. & Body Building Co. Ltd., In re (1975) 45 Comp Cas 157 (Pat)].
Shareholders may validate by post consent a resolution passed at a meeting called on a shorter notice. [Self Help (P) Industrial Estate (P) Ltd., In re (1972) 42 Comp Cas 605 (Mad)].

Ajay Mishra

Ajay Mishra (Expert)

29 August 2013 Specimen of Form 22A
Consent by shareholder for shorter notice
[Pursuant to section 171(2)]
To,
The Board of directors
Abha Jaiswal Consultants Ltd.
132, Mahavir Nagar
Lucknow (U.P.)

I, Pramod Jain S/o Shri Sheel Chand Jain, R/o Bamor Kala, District Kanpur (U.P.) holding 1,000 equity shares of Rs. 100 each in the company in my own name, hereby give consent, pursuant to section 171(2) of the Companies Act, 1956, to hold the Annual General Meeting on 30th September, 2005 at shorter notice.

Pramod Jain
xx.xx.xxxx

Kanpur

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