deeds query..

is writing Explanatery statements with notice of general meetings mandatory as i didnt found any in suggested answers??

Replies (6)

 

Every Buss transacted in a GM is considered to be Special Buss. And as per Sec 173 Every SB requires an Explanatory Sttement.

ya i knw about this sir but m nt clear about to write them in exams or not

Dear Friend,

Kindly appreciate- the funda of Special or Ordinary business is that to judge whether a business is special or ordinary you must look in to the relevant section i.e. whether it is required to be passed by Special or ordinary resolution. 

Whether a business is special or ordinary is not dependant on passing majority. To elaborate further only 4 business as mentioned in section 173 (1)(a) are ordinary business and rest all the businesses u/s 173(1)(b) are special businesses whether they are required to be passed by Special or ordinary resolution.

For example Alteration of Article is required to be passed by Special Resolution u/s 31 but it is an ordinary business.

Similarily appointment of auditor u/s 224 or approval of balance sheet in AGM u/s 209 by shareholders is to be done by ordinary resolution but still they are special business read with section 173.

So if a business is a special business than explanatory statement is required to be attached u/s 173 with the notice of general meeting. Likewise nothing is required to be attached with an ordinary business.

Best Regards

For exam I’d like to suggest you one thing that mention the funda straight away to show your knowledge and mention the format with short explanatory note u/s 173.

 

That would be all to impress the examiner.

 

4 xams in my thot it depends on ur time n requirement of ans.

 

I mean to say if it is required by Q dan u know dat u han to give it.

If it is not, dan follow ur watch, If it allows u dan make an Xplanatory stat oderwise do the other Q.

Wel I never found d time in the paper of law nd plz don’t call me sir use only RAJ.:)

thnx both of u..:)

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