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A company served a notice of general meeting upon its members. The notice stated that a resolution to increase the share capital of the company would be considered at such meeting. A shareholder complaints that the amount of Proposed increase was not specified in the notice. Is the notice valid?
Notice is invalid as per Sec 173, since any business transacted at a general meeting (or even at an AGM pertaining to increase in share capital), is special business.
An explanatory note and the full text of the resolution should be attached to the notice pertaining to the item of special business to be transacted for the notice to be valid. The full text of the resolution will obviously mention the increase in share capital.
Rahul Dang & Associates-Chartered Accountants
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