Section 116: Resolutions Passed at Adjourned Meetings

Estimated Reading Time: 2 minutes


Section 116 of Companies Act, 2013 part of chapter VII, dealing with provisions with respect to management and administration of a company, provides for resolution to be passed at adjourned meetings. This section is very brief and gives the date for resolution passed at the adjourned meeting, bringing clarity on the subject.

Purpose of Section 116

This section is very brief and states that where a resolution is passed at an adjourned meeting of a company, holders of any class of shares in a company or the Board of directors of a company, the resolution shall be treated as passed on the day it was actually passed and not on any earlier date.

Situation Before Enactment of Section 116

This section corresponds to section 191 (Resolutions passed at adjourned meetings) of the 1956 Act. No change has been brought by the act, 2013. 

Application of Section 116

This section basically comes into application, whenever a resolution has been passed at an adjourned meeting. This section lays down that from which this resolution will be said to have been passed by the company. 

Concluding Summary

This is a brief but important section, bringing clarity on the status of resolution passed at adjourned meeting, to better effect can be given to the resolution, in the interest of the company and the shareholders.

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