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Microlesson · 5-min read

Chairman of Meeting (Section 104)

# Chairman of Meeting [Section 104]

Every meeting needs a presiding officer to maintain order, take decisions on procedural questions, and authenticate the minutes. That person is the Chairman.

## How is the Chairman Chosen?

### Default Rule (No Article Provision)

  • Members personally present elect one of themselves as Chairman.
  • The election is by a show of hands.

### If Articles Provide Otherwise

The Articles of Association may specify a different method (e.g., the Chairman of the Board automatically chairs general meetings). Section 104 only applies 'unless the articles otherwise provide'.

## What if a Poll is Demanded on the Election?

  • The Chairman elected by show of hands continues to chair the meeting until the poll result is declared.
  • If the poll elects a different person, that new person becomes Chairman for the rest of the meeting.
  • This avoids any leadership vacuum while the poll is being conducted.

## Powers and Duties of Chairman

Power/DutyExplanation
Manages the meetingMaintains decorum till conclusion
Decides procedural questionsHas prima facie authority on questions arising at the meeting
Must be impartialStrict impartiality is required
Executes minutesSigns the minutes book to authenticate proceedings

## Casting Vote — A Special Power

A casting vote is a second vote the Chairman may cast only if the regular vote produces an exact tie.

Key conditions:

  • Must be expressly conferred by the Articles — it is not automatic.
  • Available in both Board meetings AND general meetings (if articles allow).

If Articles are silent:

  • An ordinary resolution on which votes are equal is deemed dropped (i.e., not passed).

## Private Company Exemption

Section 104 applies to a private company unless the section specifies otherwise OR the articles of the private company provide otherwise.

Catch: This exemption is lost if the private company has defaulted in filing:

  • Financial statements under Section 137, OR
  • Annual return under Section 92.

Worked example

### Example 1

Q: At ABC Ltd's AGM, the show-of-hands election names Mr. P as Chairman. A poll is then demanded on the election itself. Mr. Q wins the poll. From what point is Mr. Q the Chairman?

A: Mr. P continues to act as Chairman during the conduct of the poll (so the meeting is not leaderless). Once the poll result is declared in favour of Mr. Q, Mr. Q becomes Chairman for the rest of the meeting.

### Example 2

Q: At a general meeting of DEF Ltd, a resolution receives 50 votes for and 50 against. The Articles are silent on a casting vote. What is the outcome?

A: The resolution is deemed dropped (not passed). A casting vote arises only if the Articles confer it expressly; absent such provision, equality of votes = rejection.

### Example 3

Q: XYZ Pvt Ltd has defaulted in filing its annual return under Section 92 for FY 2024-25. Can the company rely on the private company exemption to Section 104?

A: No. The exemption is available only to private companies that have NOT defaulted in filing financial statements (Sec 137) or annual return (Sec 92). XYZ must comply with Section 104 in the standard manner.

⚠️ Common exam mistakes

  • Assuming the Chairman always has a casting vote — it must be expressly granted by Articles.
  • Treating a tied vote as 'passed' when Articles are silent on casting vote — actually it is deemed dropped.
  • Believing the show-of-hands Chairman is displaced immediately upon a poll being demanded — he continues until the poll result is declared.
  • Applying the private company exemption mechanically without checking Section 92/137 filing compliance.
  • Confusing 'casting vote' with the Chairman's own ordinary vote — casting vote is the second vote used only to break a tie.
Bare-Act text Section 104 · Companies Act, 2013 · click to expand
Section 104 of the Companies Act, 2013 provides that unless the Articles of Association of the Company otherwise provide, the members, personally present, shall elect among themselves to be the Chairman on a show of hands. If a poll is demanded on the election of the Chairman, the Chairman elected by show of hands shall continue to be the Chairman of the meeting until some other person is elected as Chairman as a result of poll, and such other elected person shall be the Chairman for rest of the meeting.
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