Deena.Vanan (Grad. CWA, ACA, CS(F)) (120 Points)
26 October 2010Can a PRIVATE company restrict its members from exercising his voting rights on any other ground not being the one mentioned in Sec. 181 of the companies act
Dhruv
(Chartered Accountant)
(308 Points)
Replied 26 October 2010
Yep! As per section 181, private company can put it's own restriction on voting rights in it's Articles and thereby restrict. Just for general reference all the section from 171-186 in Companies Act, Private Companies can set their own provisions in the articles.
Santhosh Poojary
(SIEMPRE AHÍ PARA TI)
(15607 Points)
Replied 27 October 2010
SECTION 181. RESTRICTION ON EXERCISE OF VOTING RIGHT OF MEMBERS WHO HAVE NOT PAID CALLS, ETC.
Notwithstanding anything contained in this Act, the articles of a company may provide that no member shall exercise any voting right in respect of any shares registered in his name on which any calls or other sums presently payable by him have not been paid, or in regard to
Suresh Prasad
(www.aubsp.com)
(15630 Points)
Replied 27 October 2010
Section 181
Restriction on exercise of voting right of members who have not paid calls, etc.—
Notwithstanding anything contained in this Act, the articles of a company may provide that no member shall exercise any voting right in respect of any shares registered in his name on which any calls or other sums presently payable by him have not been paid, or in regard to which the company has and has exercised any right of lien.
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