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Microlesson · 5-min read

Postal Ballot (Section 110)

## Section 110 - Postal Ballot

### Meaning

Postal Ballot means voting by post or through any electronic mode.

### Two Categories of Business

A. Business that SHALL be transacted by postal ballot (mandatory):

As prescribed under the Rules, including:

1. Alteration of the objects clause of the Memorandum (MoA).

2. Alteration of Articles for inserting or removing the provision of a private company.

3. Change of registered office outside local limits (city, town, village).

4. Change in objects for which money was raised through a prospectus (variation of terms).

5. Issue of shares with differential voting rights.

6. Variation in rights attached to a class of shares/debentures.

7. Buy-back of shares under Section 68.

8. Election of a Small Shareholders' Director (Section 151).

9. Sale of the whole or substantially the whole of an undertaking (Section 180(1)(a)).

10. Giving loans or extending guarantees beyond limits (Section 186).

### Exception

The following are NOT transacted through postal ballot — they must be at a meeting:

  • Ordinary business (adoption of accounts, declaration of dividend, retirement of directors, appointment of auditors).
  • Any business in respect of which directors or auditors have a right to be heard at the meeting.

### Procedure (Key Points)

  • Notice along with postal ballot form and self-addressed postage-prepaid envelope is sent to members.
  • Members may also vote through electronic means.
  • Members must return the ballot within 30 days from the date of dispatch of notice.
  • A scrutinizer is appointed to conduct the postal ballot in a fair and transparent manner.
  • Resolutions passed by postal ballot are deemed to have been passed at a duly convened meeting.

Worked example

### Example 1

Example: ABC Ltd. wants to change its registered office from Mumbai to Bengaluru (outside local limits). This must be transacted by postal ballot.

### Example 2

Example: XYZ Ltd. proposes to alter its objects clause. The resolution must be passed via postal ballot.

### Example 3

Example: Adoption of annual accounts is ordinary business — cannot be transacted by postal ballot; must be at the AGM.

⚠️ Common exam mistakes

  • Trying to pass ordinary business resolutions through postal ballot.
  • Ignoring the exception for matters where directors/auditors have a right to be heard.
  • Confusing the 30-day return period with other voting timelines.
  • Forgetting that postal ballot includes voting by electronic means (e-voting).
Bare-Act text Section 110 · Companies Act, 2013 · click to expand
Section 110(1) - Notwithstanding anything contained in this Act, a company shall, in respect of such items of business as the Central Government may, by notification, declare to be transacted only by means of postal ballot, transact such business by means of postal ballot, instead of transacting it at a general meeting; and may, in respect of any item of business, other than ordinary business and any business in respect of which directors or auditors have a right to be heard at any meeting, transact by means of postal ballot.
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