1966 (2) TMI 59

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....n of the points involved in the case, it would be necessary to consider certain provisions of the Act, as amended by Act 65 of 1960. The material portions of section 263 of the Act are in the following terms: "263. (1) At a general meeting of a public company or of a private company which is a subsidiary of a public company, a motion shall not be made for the appointment of two or more persons as directors of the company by a single resolution, unless a resolution that it shall be so made has first been agreed to by the meeting without any vote being given against it. (2) A resolution moved in contravention of sub-section (1) shall be void, whether or not objection was taken at the time to its being so moved. " Section 629A is a re....

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....er a single resolution for election of directors, without a prior unanimous resolution to that effect (as required by the last clause of section 263(1) of the Act), they should all be punished under section 629A of the Act. The City Magistrate accepted the contention of the complainant and convicted all the respondents, sentencing them to pay a fine of Rs. 250 each and in default to undergo 15 days' simple imprisonment each. The complainant was also awarded Rs. 200 as costs of the proceeding and Rs. 300 as reward out of the fine, if realised, as contemplated by section 626 of the Act. The respondents went up in appeal to the Sessions Judge, who allowed the same and set aside their conviction and sentences; hence, this appeal by the compl....