If in a Private Limited Company Board meeting out of 4 directors, 3 approve an agenda item and 1 does not - is the agenda item is considered approved by Show of hands? Please confirm
What happens when 2 approve and 2 dis-approve ?
kings22 (Shareholder) (160 Points)
07 November 2020If in a Private Limited Company Board meeting out of 4 directors, 3 approve an agenda item and 1 does not - is the agenda item is considered approved by Show of hands? Please confirm
What happens when 2 approve and 2 dis-approve ?
Yogina
(PCS)
(677 Points)
Replied 07 November 2020
Governance of private limited company depends more on its articles of association. In case of absence of specific provisions wrt board meetings in articles, the resolution will pass with majority of assents. The reason of dissent should also be recorded in minutes.
The chairman of board can exercise deciding vote as tie-breaker.
Hope it clarifies.
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
CAclubindia
