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In In re Godrej Industries Limited, the company sought shareholders' approval of a…

Company Law (Corporate Law)

In In re Godrej Industries Limited, the company sought shareholders' approval of a scheme of amalgamation only through postal ballot and electronic voting, without holding a meeting. What did Justice G.S. Patel of the Bombay High Court hold?

Show answer and explanation

Answer: D. The postal ballot provision cannot do away with the court-ordered meeting, though electronic voting can supplement it.

Explanation

Justice G.S. Patel held that the postal ballot provision cannot do away with the court-ordered meeting to approve a scheme of amalgamation. A ballot allows only a yes or no on a fixed text, while a real meeting lets shareholders ask questions, hear explanations and propose changes, for example to the exchange ratio. The tempting view that a postal ballot is enough because everyone still votes ignores this right to discuss, and electronic voting can supplement the meeting but cannot replace it.

Legal provision:
Section 110, Companies Act, 2013