Circular Resolution

931 views 2 replies

What is Circular Resolution? I want to know about Circular Resolution in detail.

Replies (2)

A board of Directors of a Private Limited company discusses all issues in the Board meeting and the decisions taken in such meeting are recorded as resolutions. The resolutions are implemented by the Management.
.
Only decisions taken by Board with required Corum or quorum are valid.
.
When any issue which requires a decision of the Board crops up, a meeting of Directors is called for. Sometimes a required corum may not be there or the Directors may not be able to meet for some reason. If an urgent decision is required, the issue is circulated and the decision of the Directors is taken by circulation of the issue requiring decision. The resolution passed by the Directors on issue thus circulated is caled circular decision.
.
An issue for resolution of the board can be circulated by email. The directors can give send their vote for or against the resolution by email. Once a resolution is made by majority decision, an extract of the same can be certified to be a true copy either by one of the Directors or the Company Secretary. That would suffice. The emails need not be produced in the Court and therefore the question of admissibility does not arise.
.
On a separate note, emails are admissible in evidence, after amendment of Evidence Act pursuant to passing of Information Technology Act.
.
Expert Answer By Advocate G V S Jagannadha Rao
.
Source Link

Thanks you sir

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details