Company Registration in Tirupur
Restriction on voting rights
Section 47 of the 2013 Act confers voting rights on every member holding any equity share capital, however small it may be.A company cannot by its articles or otherwise deny voting rights to holders of shares below a minimum number such as " only shareholders holding five or more shares are entitled to vote" and so on; nor can a maximum number of votes be fixed irrespective of the member of the shares held by a member; the only exception being in the case of banking companies as noted below.However section 106 of the 2013 Act provides that the articles of a company may provide that no member shall exercise any voting right in respect of the shares on which any calls or other sums presently payable by him have not been paid or in regard to which the company has a right of lien and has exercised that right.Besides this, a company shall not prohibit any member from exercising his voting right on any other ground.For details, see notes under section 106 of the 2013 Act.Any regulation/provision that completely takes away the voting rights can be varied by way of issuing shares with differential rights under section 43 of the 2013 Act.
Appointment of proxies
Any member of a company entitled to attend and vote at a meeting of the company shall be entitled to appoint another person as a proxy to attend and vote at the meeting on his behalf. Such another person is 'proxy'.It may be noted that where a proxy is appointed, the member is not transferring his voting right;a proxy is merely appointed by a member to vote on his behalf.Fourth provision to section 105(1) of the 2013 Act stipulates that a single person cannot act as proxy for more than 50 persons.Section 87 of the 1956 Act dealt with voting rights of equity shareholders and preference shareholders - while a member holding equity shares has the right to vote on every resolution placed before the company which directly affect the rights attached to his preference shares.However,as regards preference shareholders, the section craved an exception - in case of the dividend due on such preference shares or any part thereof remained unpaid for the specified period (separately for cumulative and for non-cumulative preference shares), then preference shareholders would be entitled to vote on every resolution placed before the company at any meeting.
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