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SECTION 175 OF COMPANIES ACT, 2013 – PASSING OF RESOLUTION BY CIRCULATION

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 * Updated Till : August 13, 2024

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SECTION 175. PASSING OF RESOLUTION BY CIRCULATION

[Effective from 1st April, 2014]

(1) No resolution shall be deemed to have been duly passed by the Board or by a
committee thereof by circulation, unless the resolution has been circulated in
draft, together with the necessary papers, if any, to all the directors, or
members of the committee, as the case may be, at their addresses registered with
the company in India by hand delivery or by post or by courier, or through such
electronic means as may be prescribed and has been approved by a majority of the
directors or members, who are entitled to vote on the resolution:

Provided that, where not less than one-third of the total number of directors of
the company for the time being require that any resolution under circulation
must be decided at a meeting, the chairperson shall put the resolution to be
decided at a meeting of the Board.

(2) A resolution under sub-section (1) shall be noted at a subsequent meeting of
the Board or the committee thereof, as the case may be, and made part of the
minutes of such meeting.

Applicable Rules

Companies (Meetings of Board and its Powers) Rules, 2014

[Effective from 1st April, 2014]

Rule 5. Passing of resolution by circulation.—A resolution in draft form may be
circulated to the directors together with the necessary papers for seeking their
approval, by electronic means which may include E-mail or fax.

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