Respected Sir/Mam,
As per exemtption notification dated 05th June,2015(exemption to private companies), a Director after disclosing interested can participate in the Board Meeting. The phrase "participation" includes right to vote? Please clarify this whether an interested director after diclosing interest can dicuss and vote on the matter or not.
Thank you
yes can participate and vote but will not count in quorum.
As per Notification dated 5th June, 2015, all the Interested Directors can participate and vote at the Board Meeting after disclosure of his interest. However, the corresponding provisions about ‘Quorum of Board Meeting’has not been changed. Therefore, the Interested Directors cannot be part of the valid Quorum.
In case of a Pvt. Ltd Company, having three directors and all of them are interested. Then how will the exemption be useful to such Pvt. Co. since all the Directors are interested?
Thank you Sir, I also thought in same direction, Thank you.
Then in this case you need to pass such resolution in GM by passing of OR.
CAclubindia
