{"id":110084,"date":"2022-09-16T15:32:04","date_gmt":"2022-09-16T10:02:04","guid":{"rendered":"https:\/\/legalwindow.in\/?p=110084"},"modified":"2022-09-16T15:37:48","modified_gmt":"2022-09-16T10:07:48","slug":"rules-and-procedures-of-board-of-directors-meetings","status":"publish","type":"post","link":"https:\/\/www.legalwindow.in\/blog\/rules-and-procedures-of-board-of-directors-meetings\/","title":{"rendered":"Procedure for Cancellation of Resolution passed in Board Meeting"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-110088 size-full\" title=\"Rules and Procedures of Board of Directors Meetings\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Procedure-for-Cancellation-of-Resolution-passed-in-Board-Meeting-2.png\" alt=\"Rules and Procedures of Board of Directors Meetings\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Cancellation-of-Resolution-passed-in-Board-Meeting-2.png 1200w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Cancellation-of-Resolution-passed-in-Board-Meeting-2-600x315.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Cancellation-of-Resolution-passed-in-Board-Meeting-2-300x158.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Cancellation-of-Resolution-passed-in-Board-Meeting-2-1024x538.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Cancellation-of-Resolution-passed-in-Board-Meeting-2-768x403.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/>There is no provision in the Companies Act 2013 for the annulment of a resolution, whether it is a resolution of the board of directors or a resolution passed at a general meeting. However, sometimes there are circumstances where it is necessary to cancel\/revoke the resolution, and the Board of Directors is responsible and can take appropriate action. A resolution of the board of directors or a resolution passed at a general meeting may be revoked by the board of directors or the members, as the case may be. So let us have a look at the procedure for the cancellation of the resolution passed by the Board.<\/span><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><b>Table of Contents<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#a\"><span style=\"font-weight: 400;\">What is a Company Resolution?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Resolution\"><span style=\"font-weight: 400;\">Resolution Withdrawal<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#for\"><span style=\"font-weight: 400;\">Procedure for revoking a resolution of the board of directors\u00a0<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#the\"><span style=\"font-weight: 400;\">Procedure for revoking the resolution of the general meeting\u00a0<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#at\"><span style=\"font-weight: 400;\">Revocation of resolutions at the same meeting\u00a0<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#of\"><span style=\"font-weight: 400;\">Effect of revocation of the resolution\u00a0<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#be\"><span style=\"font-weight: 400;\">Points to be considered<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Final\"><span style=\"font-weight: 400;\">Final words<\/span><\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"a\"><b>What is a Company Resolution?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In companies, major decisions are taken by the board of directors of the company in its respective board meeting, generally called a &#8220;Board Resolution&#8221;. However, some decisions that have a major impact on the organization and go beyond the scope of ordinary business require the intervention of company members approved at the annual general meeting or an extraordinary general meeting, called &#8220;ordinary resolutions&#8221; and &#8220;special resolutions&#8221;.<\/span><\/p>\n<h2 id=\"Resolution\"><b>Resolution Withdrawal<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The complete procedure for passing any resolution is prescribed by law and we must follow it. But what about reversing the whole process? If the company is unwilling to proceed with the adopted resolution, what is the procedure for withdrawing this resolution?<br \/>\n<\/span><span style=\"font-weight: 400;\">First of all, it should be noted that neither the Companies Act, 2013 nor any other previous Acts contain any specific provision in this regard. But the board is the savior here, if such a necessity arises, it is responsible for taking appropriate measures.<\/span><\/p>\n<h2 id=\"for\"><b>Procedure for revoking a resolution of the board of directors\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A resolution of the board of directors can be revoked by adopting a new resolution of the board of directors on revoking the previous resolution (which is being revoked) at the next meeting of the board of directors. The details of the previous resolution, such as the serial number of the meeting, date, time, and place of the meeting, number of the resolution, etc., must be stated in the new resolution, where a resolution to cancel the earlier resolution will be proposed.<\/span><\/p>\n<h2 id=\"the\"><b>Procedure for revoking the resolution of the general meeting\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The board of directors approves the resolution on revoking the earlier resolution (which is to be rescinded) and also convenes the MVH, where a resolution on revoking the earlier resolution will be proposed. A general meeting will be held and the members will consider and approve or reject the cancellation of the earlier resolution.<br \/>\n<\/span><span style=\"font-weight: 400;\">The details of the previous resolution must be given in the new resolution, such as the serial number of the meeting, date, time, and place of the meeting, number of the resolution, etc.<\/span><\/p>\n<h2 id=\"at\"><b>Revocation of resolutions at the same meeting\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">It should be noted here that resolutions cannot be revoked at the same meeting. If a resolution is approved and later at the same meeting the majority of executives disagree with it, the disagreement with this plan will be noted in the minutes and the resolution will not be adopted.<\/span><\/p>\n<h2 id=\"of\"><b>Effect of revocation of the resolution\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The revocation of the resolution will be effective from the day it was revoked. It cannot be revoked with retroactive effect, that is, from the time the resolution was passed until the date on which the resolution was passed, the earlier resolution will be considered valid for that period. The company will be responsible for the acts done by it or others based on this resolution.<\/span><\/p>\n<h2 id=\"be\"><b>Points to be considered<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A decision taken with malicious or fraudulent intent to defraud the parties concerned will not be allowed to be set aside by the <a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/contact-us\/roc.html\" target=\"_blank\" rel=\"noopener\">ROC<\/a> or the Tribunal.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The resolution cannot be withdrawn or revoked at the same board or general meeting.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The new resolution adopted at the following meeting will not have a retroactive effect, it will take effect on the date of adoption of the new canceling resolution, not on an earlier date.<\/span><\/li>\n<\/ul>\n<h2 id=\"Final\"><b><a href=\"https:\/\/legalwindow.in\/appointment-of-director\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-110087 size-full\" title=\"Appoinment of New director in company\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Appoint-a-Director-in-any-Company-starting-from-3000-1.png\" alt=\"Appoinment of New director in company\" width=\"1000\" height=\"200\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Appoint-a-Director-in-any-Company-starting-from-3000-1.png 1000w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Appoint-a-Director-in-any-Company-starting-from-3000-1-600x120.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Appoint-a-Director-in-any-Company-starting-from-3000-1-300x60.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Appoint-a-Director-in-any-Company-starting-from-3000-1-768x154.png 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a>Final words<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As individuals, we are very well equipped with decision-making skills. From choosing between alternatives to choosing what is right or wrong, the individual is solely responsible for his actions. Similarly, the company has to go through constant ups and downs, viz-a-viz, changes in the regulatory framework, control, government policy, national, and international affairs, and political pressure and must take the right decisions with utmost care. It can impact several people such as employees, retailers, suppliers, consultants, and a range of stakeholders. As an artificial person having a separate legal personality, a company through its resolution takes its decision, which though named as a company resolution, in both cases is taken by an individual or a group of individuals with rational intelligence, knowledge, and expertise.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There is no provision in the Companies Act 2013 for the annulment of a resolution, whether it is a resolution of the board of directors or a resolution&hellip;<\/p>\n","protected":false},"author":5,"featured_media":110089,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-110084","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Rules and Procedures of Board of Directors Meetings &#187; 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