circular resolution

Meetings 1608 views 1 replies

Can anyone guide me on below given query??

Section 289 of the Companies Act, 1956 reads as follows:

289. PASSING OF RESOLUTIONS BY CIRCULATION.

No resolution shall be deemed to have been duly passed by the Board or by a committee thereof by circulation, unless the resolution has been circulated in draft, together with the necessary papers, if any, to all the directors, or to all the members of the committee, then in India (not being less in number than the quorum fixed for a meeting of the Board or committee, as the case may be), and to all other directors or members at their usual address in India, and has been approved by such of the directors as are then in India, or by a majority of such of them, as are entitled to vote on the resolution.

Suppose there r 3 directors among them 2 are in US and one is in India. So as per above provision atleast 2 directors should be in India......for getting circular resoution passed.. So i think it is not possible to pass circular resouiton for this particular case..

SO this is what Act says:

But if suppose the Articles of the Company has following cluase for passing the Circular resolution:

185.  No Resolution by circular shall be deemed to have been duly passed by the Board or by a Committee thereof by circulation unless such Resolution has been circulated in draft, together with the necessary papers, if any, to all the Directors, or to all the members of the Committee at the respective addresses registered with the Company and has been approved by the majority of the Directors or Members of the Committee or by a majority of such of them as are entitled to vote on the Resolution.

 then in that case can we passed the Circular resoution for the above mentioned situation??? if this would be the clause then what i suppose is that we can pass the circular resolution even though directors are in foreign.

Please kindly suggest for the given query.

Thanks & Regards

Replies (1)

No We cant pass the circular resolution as per the articles. This provision in articles restricts the statutory provisions in the company act.

As per the companies act the number of directors in india cannot be below the number fixed for the minimum quorum.

Where there is only 1 director in india it will be below the minimum quorum required.

Therefore the board may appoint additional directors who are not interested and transact the business in the meeting


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details