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Section 106 of the Companies Act 2013: Restriction on Voting Rights

SECTION-106 (Restriction on Voting Rights) under CHAPTER-VII (Management and Administration) of the Companies Act, 2013

(1) Notwithstanding anything contained in this Act, the articles of a company may provide that no member shall exercise any voting right in respect of any shares registered in his name on which any calls or other sums presently payable by him have not been paid, or in regard to which the company has exercised any right of lien.

(2) A company shall not, except on the grounds specified in sub-section (1), prohibit any member from exercising his voting right on any other ground.

(3) On a poll taken at a meeting of a company, a member entitled to more than one vote, or his proxy, where allowed, or other person entitled to vote for him, as the case may be, need not, if he votes, use all his votes or cast in the same way all the votes he uses.






Extra Notes for Readers

(1) The Companies Act, 2013 received the assent of the President on the 29th August, 2013 (Published in the Gazette of India, Extraordinary, Part II - Section 1 by Ministry of Law and Justice, Legislative Department on 30th August, 2013) - link


(2) Section 106 of the Companies Act 2013 was notified by MCA Notification S.O. 2754(E) dated 12th September 2013 (w.e.f. 12th September 2013) - link

(3) Further, refer the Companies (Management and Administration) Rules, 2014 - link


[Note: Please also check further amendments to the Companies (Management and Administration) Rules, 2014]


(4) Specified IFSC Public Company - MCA Notification G.S.R. 08(E) dated 4th January, 2017 - link

Serial
Number
Provisions of the Companies    Act,    2013 (18 of 2013)
Exceptions/Modifications/Adaptations
24.
Sections 101 to 107 and section 109
Shall apply in case of a Specified IFSC public company, unless otherwise specified in the articles of the company.


(5) Private Companies - MCA Notification G.S.R. 464(E) dated 5th June 2015 - link

Serial
Number
Chapter/Section number/Sub-section(s) in the Companies Act, 2013
Exceptions/Modifications/Adaptations
7.
Chapter VII, sections 101 to 107 and section 109.
Shall apply unless otherwise specified in respective sections or the articles of the company provide otherwise.





This page was last updated on 17th March, 2017.

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