Section 106: Restriction on voting rights
This section is for setting rules on when a company can restrict a member's voting rights.
The section, clause by clause
What the section says
In plain terms
(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.
A company's articles can stop a member from voting if they haven't paid calls or other sums due on their shares, or if the company has a lien on those shares.
(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.
A company can't stop a member from voting on any grounds other than unpaid calls or sums on their shares, or a lien on those shares.
(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.
When a poll is taken at a company meeting, a member with multiple votes can choose how to use them, and doesn't have to use all of them or vote the same way with all of them.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Referred to by
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.