22 Procedure to be Followed for Conducting 
Business Through Postal Ballot
(1) Where a company is 
required or decides to pass any resolution by way of postal ballot, it shall 
send a notice to all the shareholders, along with a draft resolution explaining 
the reasons therefor and requesting them to send their assent or dissent in 
writing on a postal ballot because postal ballot means voting by post or through 
electronic means within a period of thirty days from the date of dispatch of the 
notice.
(2) The notice shall be 
sent either (a) by Registered Post or speed post, or (b) through electronic 
means like registered e-mail id or (c) through courier service for facilitating 
the communication of the assent or dissent of the shareholder to the resolution 
within the said period of thirty days.
(3) An advertisement 
shall be published at least once in a vernacular newspaper in the principal 
vernacular language of the district in which the registered office of the 
company is situated, and having a wide circulation in that district, and at 
least once in English language in an English newspaper having a wide circulation 
in that district, about having dispatched the ballot papers and specifying 
therein, inter alia, the following matters, namely:-
(a) a statement to the 
effect that the business is to be transacted by postal ballot which includes 
voting by electronic means;
(b) the date of 
completion of dispatch of notices;
(c) the date of 
commencement of voting;
(d) the date of end of 
voting;
(e) the statement that 
any postal ballot received from the member beyond the said date will not be 
valid and voting whether by post or by electronic means shall not be allowed 
beyond the said date;
(f) a statement to the 
effect that members, who have not received postal ballot forms may apply to the 
company and obtain a duplicate thereof; and
(g) contact details of 
the person responsible to address the grievances connected with the voting by 
postal ballot including voting by electronic means.
(4) The notice of the 
postal ballot shall also be placed on the website of the company forthwith after 
the notice is sent to the members and such notice shall remain on such website 
till the last date for receipt of the postal ballots from the 
members.
(5) The Board of 
directors shall appoint one scrutinizer, who is not in employment of the company 
and who, in the opinion of the Board can conduct the postal ballot voting 
process in a fair and transparent manner.
(6) The scrutinizer shall 
be willing to be appointed and be available for the purpose of ascertaining the 
requisite majority.
1[(7) If a resolution is assented to by the requisite 
majority of the shareholders by means of postal ballot including voting by 
electronic means, it shall be deemed to have been duly passed at a general 
meeting convened in that behalf.]
(8) Postal ballot 
received back from the shareholders shall be kept in the safe custody of the 
scrutinizer and after the receipt of assent or dissent of the shareholder in 
writing on a postal ballot, no person shall deface or destroy the ballot paper 
or declare the identity of the shareholder.
(9) The scrutinizer shall 
submit his report as soon as possible after the last date of receipt of postal 
ballots but not later than seven days thereof;
(10) The scrutinizer 
shall maintain a register either manually or electronically to record their 
assent or dissent received, mentioning the particulars of name, address, folio 
number or client ID of the shareholder, number of shares held by them, nominal 
value of such shares, whether the shares have differential voting rights, if 
any, details of postal ballots which are received in defaced or mutilated form 
and postal ballot forms which are invalid.
(11) The postal ballot 
and all other papers relating to postal ballot including voting by electronic 
means, shall be under the safe custody of the scrutinizer till the chairman 
considers, approves and signs the minutes and thereafter, the scrutinizer shall 
return the ballot papers and other related papers or register to the company who 
shall preserve such ballot papers and other related papers or register 
safely.
(12) The assent or 
dissent received after thirty days from the date of issue of notice shall be 
treated as if reply from the member has not been received.
(13) The results shall be 
declared by placing it, along with the scrutinizer’s report, on the website of 
the company.
2[(14) The resolution shall be deemed to be passed on 
the date of at a meeting convened in that behalf.]
(15) The provisions of rule 20 regarding 
voting by electronic means shall apply, as far as applicable, mutatis 
mutandis to this rule in respect of the voting by electronic 
means.
(16) pursuant to clause 
(a) of sub-section (1) of section 110, the following items of business shall be transacted only by means of voting 
through a postal ballot-
(a) alteration of the 
objects clause of the memorandum and in the case of the company in existence 
immediately before the commencement of the Act, alteration of the main objects 
of the memorandum;
(b) alteration of 
articles of association in relation to insertion or removal of provisions which, 
under sub-section (68) of section 2, are required to be included in the articles of a 
company in order to constitute it a private company;
(c) change in place of 
registered office outside the local limits of any city, town or village as 
specified in sub-section (5) of section 12;
(d) change in objects for 
which a company has raised money from public through prospectus and still has 
any unutilized amount out of the money so raised under sub-section (8) of section 
13;
(e) issue of shares with 
differential rights as to voting or dividend or otherwise under sub-clause (ii) 
of clause (a) of section 43;
(f) variation in the 
rights attached to a class of shares or debentures or other securities as 
specified under section 48;
(g) buy-back of shares by 
a company under sub-section (1) of section 
68;
(h) election of a 
director under section 
151 of the Act;
(i) sale of the whole or 
substantially the whole of an undertaking of a company as specified under 
sub-clause (a) of sub-section (1) of section 
180;
(j) giving loans or 
extending guarantee or providing security in excess of the limit specified under 
sub-section (3) of section 186:
Provided that One Person 
Company and other companies having members upto two hundred are not required to 
transact any business through postal ballot.
 
Amendment
1 & 2 . Omitted by 
Notification Dated 23rd September, 2016.