{"id":31502,"date":"2020-04-28T12:31:49","date_gmt":"2020-04-28T07:01:49","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=31502"},"modified":"2022-09-13T16:24:15","modified_gmt":"2022-09-13T10:54:15","slug":"special-notice-resolutions-resolutions-requiring-special-attention","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/special-notice-resolutions-resolutions-requiring-special-attention\/","title":{"rendered":"Special Notice Resolutions: Resolutions Requiring Special Attention"},"content":{"rendered":"<p class=\"has-drop-cap\">The concept of Special Notice could be traced in line to the <strong>provisions of Section 255 of the previous Companies Act, 1956<\/strong>. Now, the concept has been embodied in a wider manner under the applicable provisions of the Companies Act, 2013.<\/p>\n\n\n\n<p>Lawmakers took this concept of\nSpecial Notice as being of prime importance for resolutions requiring special attention;\nand also that the procedural aspects do differ from other resolutions.&nbsp; Also, the say of shareholders (somewhat\nMinority Stake ones) being the owners of the company was given this privilege\nto invoke these provisions. Also, enabling provisions are made for giving an opportunity\nof being heard on whom the matter being dealt.<\/p>\n\n\n\n<p><strong><em>Let us have a deep insight into the Applicability &amp; Procedural concepts thereto.<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"328\" height=\"242\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Applicability-Procedural-concepts.png\" alt=\"Applicability &amp; Procedural concepts\" class=\"wp-image-31503\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Applicability-Procedural-concepts.png 328w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Applicability-Procedural-concepts-300x221.png 300w\" sizes=\"(max-width: 328px) 100vw, 328px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Legal Provisions <\/h2>\n\n\n\n<p>Special Notice (also Members Resolution) as discussed earlier is an intention to move a resolution at a General Meeting (either EGM or AGM) &nbsp;has to be given specifically by the shareholders governed by <strong>Section 115 of the Companies Act, 2013<\/strong> and <strong>Rule 23<\/strong> of the Companies (Management and Administration) Rules, 2014 in line with Secretarial Standards (SS-II).<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"529\" height=\"239\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Legal-Provisions.png\" alt=\"Legal Provisions \" class=\"wp-image-31504\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Legal-Provisions.png 529w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Legal-Provisions-300x136.png 300w\" sizes=\"(max-width: 529px) 100vw, 529px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Points to Ponder (To be\nconsidered before enabling the provisions)<\/h2>\n\n\n\n<p><em>Before enabling the aforementioned provisions, the following needs to be considered from the Company&rsquo;s Perspective:<\/em><\/p>\n\n\n\n<ul><li>If the <strong><a href=\"https:\/\/enterslice.com\/learning\/articles-of-association\/\">Articles of Association<\/a><\/strong> of the Company contains any Provisions or restrictions for matters other than <strong>Section 169(3) &amp; 140(3)<\/strong> of the Act.<\/li><\/ul>\n\n\n\n<ul><li>Proper\nNotice by Shareholders specifying their intention to move the Resolution with the\nrequisite majority being moved <em>(not less\nthan 1 % of the total voting power <strong>or<\/strong>\nholding shares on which such aggregate sum not exceeding INR 5 lakhs has been\npaid up by them )<\/em> <\/li><\/ul>\n\n\n\n<ul><li>Members to\nthe Company not later than 3 months but at least fourteen days<strong> before<\/strong> the date of the meeting should\nhave rendered the notice. <em>(Excluding the\nday the notice is given and the day of the meeting)<\/em><\/li><\/ul>\n\n\n\n<ul><li>The Company\nshall immediately after receiving the notice should give its other members\nnotice of the Resolution within 7 days before the meeting. <em>(Excluding the day the notice is given and the day of the meeting)<\/em><\/li><\/ul>\n\n\n\n<ul><li>If due to\nany circumstances not practical to give notice, the Company should notice shall\nbe published in English language in English newspaper (having widespread reach)\nand in vernacular language (i.e. Local Language) in a vernacular newspaper\nwhere the registered office of the Company is situated.<\/li><li>If the\nCompany has its Website, accordingly be posted.<\/li><li>The opportunity\nof being heard should be given to the Director against whom the notice is\nmoved.<\/li><\/ul>\n\n\n\n<ul><li>The Company\nshould ensure to maintain the Proof of Sending notice <em>[Marble City Hospital and Research Centre P Ltd. v. Sarabjeet Singh\nMokha. [2010] case MP<\/em><\/li><\/ul>\n\n\n\n<ul><li><strong>For the Listed Entities:<\/strong><ul><li>Being Disclosure is a Material Event or Information needs to be treated accordingly [<strong>Regulation 68(2) to SEBI LODR, 2015<\/strong>]<\/li><li>Accordingly, Intimation to be done with the Respective Stock Exchange within the specified time.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p><strong>Also following should be considered from the Member&rsquo;s Perspective:<\/strong><\/p>\n\n\n\n<ul><li>Notice for same could be moved individually or\ncollectively with the Company.<\/li><li>To ensure the requisite eligibility criteria is\nfulfilled in respect to voting power and paid-up share capital held.<\/li><li>Representation of concern (Auditor\/Director) is taken\nup, and proper notice is to be sent in this respect.<\/li><li>Could also propose the candidature of Director in\nplace of Director being removed<\/li><\/ul>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/concept-and-pocedure-for-filing-form-mgt-14\/\" target=\"_blank\" rel=\"noopener noreferrer\">E-Form MGT-14: Its Concept and the Procedure for Filing it<\/a><\/mark>.<\/p><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Procedural Aspects:<\/h2>\n\n\n\n<ul><li>A special notice so moved by the shareholders for the Removal of Director or <strong><a href=\"https:\/\/enterslice.com\/learning\/role-auditor\/\">Appointing an Auditor<\/a><\/strong> other than a retiring one or retiring auditor shall not be appointed by the requisite number of members to be taken on record by the Board of the Company. <\/li><\/ul>\n\n\n\n<ul><li>Should be\nwell confirmed by the Company that the notice so served by the members not\nearlier than 3 months but at least 14 clear days before the date of the meeting\n(General Meeting) at which the Resolution is to be moved.<\/li><\/ul>\n\n\n\n<ul><li>The Company\nshould ensure to verify the Signatories being the Members of the Company, or in\ncase one acting on behalf of others should be verified accordingly. <\/li><\/ul>\n\n\n\n<ul><li>After receipt of the notice, the Board would call upon the Board meeting to discuss this matter and would at war footing give its members notice of the same within 7 clear days before the <strong><a href=\"https:\/\/enterslice.com\/learning\/what-is-annual-general-meeting-introduction-provisions\/\">general meeting<\/a><\/strong> is scheduled to be held.<\/li><\/ul>\n\n\n\n<ul><li>The Copy of\nNotice so received from the members should also be forthwith sent to Director\/Retiring\nAuditor of the Company, as the case may be for giving them an opportunity to\ntender their representations <em>(opportunity\nof being heard)<\/em>. <\/li><\/ul>\n\n\n\n<ul><li>If not\npractical to tender notice in the manner above mentioned then will publish the\nsame in one English Newspaper and another in Vernacular Newspaper having wide\ncirculation provided the same be done within 7 clear days before the meeting\nscheduled to be held.<\/li><\/ul>\n\n\n\n<ul><li>&nbsp;The copy of the notice of the general meeting\nand along with the Representation shall <em>(if\nnot possible to send then Director\/Auditor be heard orally in the Meeting) <\/em>also\nbe sent to members, auditors as the case may be.<\/li><\/ul>\n\n\n\n<ul><li>In case Representation\nby Auditor along with notice of the general meeting is not sent to members, it\nshould be filed with the concerned Registrar of Companies.<\/li><\/ul>\n\n\n\n<ul><li>It is to be noted that Ordinary Resolution is required for making the Resolution effective for <strong><a href=\"https:\/\/enterslice.com\/removal-directors-disqualification\">Removal of Director<\/a><\/strong>, and Special Resolution shall be moved in Annual General Meeting in case of Appointment of Auditor other than Existing or Retiring auditor not to be appointed. <\/li><li>Also in case, no resolution is moved for the appointment of Director in place of Removal, then the same is treated as filling up Casual Vacancy.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/filling-up-Casual-Vacancy.png\" alt=\"treated as filling up Casual Vacancy.\" class=\"wp-image-31505\" width=\"701\" height=\"227\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/filling-up-Casual-Vacancy.png 522w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/filling-up-Casual-Vacancy-300x97.png 300w\" sizes=\"(max-width: 701px) 100vw, 701px\"\/><\/figure><\/div>\n\n\n\n<ul><li>After Passing of Resolution at the Meeting of Members\nof the Company will report the same to the concerned Registrar of Companies as:<\/li><\/ul>\n\n\n\n<p><strong>For Directors:<\/strong> <strong>Form DIR-12<\/strong> be filed within 30 days from the Date of Meeting<\/p>\n\n\n\n<p><strong>For Auditors:<\/strong> Form <strong><a href=\"https:\/\/enterslice.com\/learning\/concept-and-pocedure-for-filing-form-mgt-14\/\">MGT-14<\/a><\/strong> be filed as per Section 117 of the Act within 30 days from the Date of Meeting<\/p>\n\n\n\n<p>Also, Form ADT-1 is to be filed within 15 days from the date of the meeting\nwhile updating the inclusion of such an appointment where the retiring auditor\nis not re-appointed.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Form-ADT.png\" alt=\"Form ADT-1 \" class=\"wp-image-31506\" width=\"691\" height=\"163\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Form-ADT.png 538w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Form-ADT-300x71.png 300w\" sizes=\"(max-width: 691px) 100vw, 691px\"\/><\/figure><\/div>\n\n\n\n<ul><li>After reporting the same, the Company shall record the proceeding of the meetings under the minutes of meeting maintained as per <strong>Section 118 of the Companies Act, 2013<\/strong> and will also intimate the respective Stock exchange in case of Listed company.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Punishment\nand Compoundability on Contravention <\/h2>\n\n\n\n<ul><li>Section 115 of the Act does not prescribe any penal provision for contravention of the Section. Hence, section 450 of the Companies Act will be applicable.<\/li><\/ul>\n\n\n\n<ul><li>Accordingly, the punishment for contravention would be of particular Section:<\/li><\/ul>\n\n\n\n<p>The Company and every officer of the Company who is in\ndefault shall be punishable with a fine up to INR 10,000, where the\ncontravention is a continuing one then the fine shall be INR 1,000 for every\nday of contravention.<\/p>\n\n\n\n<ul><li><strong>Contravention of rules:<\/strong><\/li><\/ul>\n\n\n\n<p>As per <strong>rule 30 of Companies (Management and Administration) Rules, 2014<\/strong> contravention of rules made under this Section, the Company and every officer who is in default are punishable with a <strong>fine up to Rs. 5,000<\/strong>, where the contravention is a continuing one then the fine shall be Rs. 500 for every day of contravention continued.<\/p>\n\n\n\n<p>Also to be noted that the offences committed under the Section and rule are compoundable under <strong>section 441 of the Act<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Takeaway<\/h3>\n\n\n\n<p>From a detailed analysis of the Section and provisions made thereunder, the Company should be more cautious before enabling such provisions. Also, the Resolution so requiring the special notice to be moved should be considered in the best interest of the Company and Stakeholders thereto.<\/p>\n\n\n\n<div class=\"read\"><p><b>Read, Also:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/removal-of-directors-as-per-companies-act-2013\/\" target=\"_blank\" rel=\"noopener noreferrer\">Removal of Directors as per Companies act 2013<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The concept of Special Notice could be traced in line to the provisions of Section 255 of the previous Companies Act, 1956. Now, the concept has been embodied in a wider manner under the applicable provisions of the Companies Act, 2013. Lawmakers took this concept of Special Notice as being of prime importance for resolutions [&hellip;]<\/p>\n","protected":false},"author":43,"featured_media":31513,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1383],"tags":[2955,2956],"acf":{"service_id":"215"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Special Notice Resolutions: Resolutions Requiring Special Attention-Enterslice<\/title>\n<meta name=\"description\" content=\"The concept of Special Notice could be traced in line to the provisions of Section 255 of the previous Companies Act, 1956.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/special-notice-resolutions-resolutions-requiring-special-attention\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Special Notice Resolutions: Resolutions Requiring Special Attention-Enterslice\" \/>\n<meta property=\"og:description\" content=\"The concept of Special Notice could be traced in line to the provisions of Section 255 of the previous Companies Act, 1956.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/special-notice-resolutions-resolutions-requiring-special-attention\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-28T07:01:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-09-13T10:54:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Special-Notice-Resolutions-Resolutions-requiring-Special-Attention.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"670\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Simardeep Singh","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Simardeep.jpeg","authorDescription":"Simardeep brings with himself over 3 years of experience in Compliance &amp; Legal domain. Professionally, he is a Company Secretary, Law Graduate and a Bachelor in Commerce.\r\nAs a professional, he has handled various Corporate Law and Secretarial Assignments for Big Corporates. He also has hands-on experience in setting up entities in India &amp; Abroad along with Involvement in Investment Banking Deals.  Also provides advisory on NCLT, RBI, and FEMA compliances and acts as a mentor for startups from the Compliance prospective.","postViews":603,"readingTime":5,"nextPost":{"id":31525,"slug":"understanding-the-concept-of-statement-of-financial-transaction"},"prevPost":{"id":31441,"slug":"what-are-the-factors-affecting-corporate-governance-in-india"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Special-Notice-Resolutions-Resolutions-requiring-Special-Attention.jpg","postTerms":"Change in Business","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/31502"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=31502"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/31502\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/31513"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=31502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=31502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=31502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}