Section 47 of CA 2013 : Section 47: Voting Rights

Explanation using Example

Imagine a company named "GreenTech Innovations Ltd." is holding its Annual General Meeting (AGM). At this AGM, several resolutions are to be voted upon, including the appointment of new directors, the adoption of financial statements, and a special resolution to amend the Articles of Association.

Mr. Sharma, an equity shareholder, holds 1,000 shares in GreenTech Innovations Ltd. According to Section 47 of the Companies Act, 2013, he has the right to vote on each resolution presented at the AGM. If there is a poll, his voting power will be proportional to his 1,000 shares in the company's paid-up equity share capital.

Ms. Gupta, on the other hand, holds 500 preference shares in the company. She can vote on resolutions that directly affect the rights of her preference shares, such as a resolution for the winding up of the company or changing the capital structure. Her voting rights on a poll are proportional to her share in the paid-up preference share capital.

Furthermore, if GreenTech Innovations Ltd. had not paid dividends on the preference shares for two years or more, Ms. Gupta and other preference shareholders in the same situation would gain the right to vote on all resolutions, not just those affecting their preference shares.