What are the consequences of failure to notify the members about the special notice?

CA Intermediate · Corporate and Other Laws · PYQS · January 2026
What are the consequences of failure to notify the members about the special notice?

Suggested Answer and Working Notes:

(ii) Even if the special notice is valid, failure to inform the members at least 7 clear days before the meeting violates Rule 23 as given above, and the consequences of the same may include; Invalidation of the resolutionRegulatory penalties under the Companies Act, 2013 Section 115 itself does not create a specific penalty for non-circulation; however, the consequences may lead to procedural invalidity / litigation risk. Alternate Answer to Part (i) Rule 23 of the Companies (Management and Administration) Rules, 2014 provides that where it is not practicable to give notice to members in the prescribed manner, the notice shall be published in English language in an English newspaper and in a vernacular language in a vernacular newspaper, both having wide circulation in the State where the registered office of the company is situated. Such notice shall also be posted on the website of the company, if any. Further, as per Rule 23 (5) , the notice must be published at least seven days before the meeting, excluding the day of publication of the notice and the day of the meeting. Thus, as the question does not explicitly stated that the company has published the notice in an English newspaper and a vernacular newspaper, or that the notice has been posted on the company's website, if any, the notice may be deemed to be invalid.

Topics: Management & Administration

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