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application-under-section-280-of-the-companies-act-2015

Application under Section 280 of the Companies Act, 2015.

Ace Litigator
Section 280 of the Companies Act, 2015, among other sections provides for situations where it is impractical to conduct a meeting as required by a company's Articles. Under the provision, a director of the company or a member of the company entitled to vote at the meeting could apply for orders that would allow the meeting to be convened, held and conducted in a manner that the court considered appropriate.   Court will give directions which may include the position that one member of the company present at the meeting would be regarded as constituting a quorum.   The purpose and spirit of the said provision is to enable companies that would otherwise find themselves exposed by difficulties in holding a meeting due to an impossibility to overcome such difficulties.    Sometimes such difficulties arise out of the provisions of the constitutive documents of the company or the conduct of a member, being either the minority or the majority, or Directors to defeat the possibility of holding a meeting.   The intention of the Parliament was for a company to get on with its affairs and should not be frustrated by the impracticality of calling and conducting a meeting.

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