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Introduction
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.
If a meeting of a company has been adjourned, it means that the meeting has been temporarily suspended or postponed to a later date. The reasons for adjourning a meeting can vary, such as the need for more information, the absence of key participants, or time constraints.
Here are some common steps and considerations when a meeting is adjourned:
1. **Announcement:**
– The chairperson or facilitator typically announces the adjournment of the meeting.
– The new date, time, and location (if applicable) for the adjourned meeting may be announced at this time.
2. **Agenda for Adjourned Meeting:**
– The agenda for the adjourned meeting may be reviewed and adjusted as necessary.
– Any unresolved items from the original meeting agenda may be carried over to the adjourned meeting as the section says.
3. **Notification:**
– Participants should be informed of the adjourned meeting and any changes in the schedule.
– Ensure that participants are aware of the reasons for the adjournment and any new developments that may impact the agenda.
4. **Preparation:**
– Participants may need to prepare additional information or updates for the adjourned meeting.
– Any issues that arose during the original meeting may need to be addressed before the adjourned meeting as the section says.
5. **Quorum:**
– Check if there will be a quorum for the adjourned meeting. A quorum is the minimum number of members required to conduct official business.
6. **Minutes:**
– Minutes of the original meeting should be reviewed and approved during the adjourned meeting.
– Any actions or decisions taken during the adjourned meeting should be recorded.
7. **Follow-Up:**
– Any tasks or action items assigned during the original meeting should be followed up on.
– Ensure that any resolutions or decisions made during the original meeting are implemented.
8. **Attendance:**
– Confirm the attendance of key participants for the adjourned meeting.
Remember that the specific procedures in case for adjourning and reconvening a meeting may be outlined in the company’s bylaws or meeting protocols. It’s important to follow established procedures and communicate effectively with all participants to ensure a smooth continuation of the meeting process.
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 in.
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.
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 of section 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.
