Company Secretary and Compliance Officer
114788 Points
Joined January 2009
Let us take an example to understand the difference between May & Shall.
Just take Section-192A of Companies Act, 1956. As per postal ballot rules there are 9 businesses for which postal ballot is compulsory for a listed company by following the process of section-192A read with rules. Sub-section (1) uses both the words.
As per Sub-section (1) a listed company may use postal ballot process in respect of any resolution voluntarily but in case of those 9 businesses use of postal ballot process is compulsory as Sub-section (1) use the word shall for such business as CG by notification declare (9 business declare by CG through P.B. Rules).
In other words use of the word SHALL imply the compulsory adherence of the provision.
In Sub-section (1) start a bracket after word may in second line and close the bracket before the word get in fourth line and then read the sub section (1).
Regards