Section 188 of the companies act, 2013
Sushil Kumar Sharma
(Querist) 20 August 2014
This query is : Resolved
Dear All Experts,
We haave issued notice of AGM, wherein resolutions under section 188 of the Companies Act, 2013 are taken as a Special Business. Now, as per the amended rules issued by the MCA, we are not required the approval of shareholders by passing special resolution but the Notice of AGM is already issued.
Please suggest me how to deal with this situation?
Thanks & Regards,
Sushil Sharma
ABDUL RAZIQUE
(Expert) 21 August 2014
As per dated 17 July 2014 circular No. 30/2014 the Govt of India ministry of corporate affairs describe as follows:
under Section 188 of the new law, all related parties would have been precluded from voting on any transaction with another related party, even if they weren't a party to that specific transaction. This proposal was causing a lot of hardship to companies where all the shareholders were related parties. There were also cases where the principal shareholders would have been denied voting rights to secure their interests on transactions in which they weren't a party. "The clarification provides relief to only preclude an interested related party from voting on such transactions,"
in this scenario the notice of AGM have not legal validity.
