Circular Resolution – Understanding Meaning, Process Structure

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Circular resolutions, as per Section 175 of the Companies Act, 2013, allow the Board of Directors to make urgent decisions without formal meetings. This method is quick, efficient, and essential for time-sensitive matters.

Key Points:

1. Process: Circulate the draft to all directors via hand delivery, post, or electronic means.
2. Approval: Resolution passes with majority approval.
3. Exclusions: Certain significant decisions like issuing securities or approving financial statements must be made in formal meetings.

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Garima Mitra

Co-founder | garima@treelife.in

Spearheads Transactions, Contracts, and Compliance verticals. Combines expertise in business law and a passion for social impact to shape the legal and financial ecosystem for startups.

Sanmita Poojari

Senior Associate | Compliance | sanmita.p@treelife.in

A compliance expert with a strong foundation in corporate legal and secretarial practices. Excels in corporate governance, regulatory filings, and advisory services on legal and financial matters, ensuring seamless corporate law compliance for clients.

Darshana Chauhan

Principal Associate | Compliance | darshana@treelife.in

Manages compliance for acquisitions, fundraising, and due diligence with meticulous execution. Ensures adherence to the Companies Act and FEMA while delivering seamless regulatory solutions.