Section 110 of CA 2013 : Section 110: Postal Ballot

Explanation using Example

Imagine a company, XYZ Ltd., is planning to amend its Articles of Association, which is a special resolution requiring shareholder approval. The board of directors decides to use the postal ballot method for this resolution as permitted by the Companies Act, 2013. They send out postal ballots to all shareholders, allowing them to vote on the amendment without attending a general meeting in person.

The company follows the prescribed procedure, including sending out notices and the ballots within the stipulated time frame. Shareholders send back their ballots with their votes. Once the voting period ends, the company tallies the votes.

If the required majority of shareholders vote in favor of the amendment through their postal ballots, according to Section 110 of the Companies Act, 2013, the resolution is deemed to have been passed as if it had been done at a general meeting specifically called for that purpose.