private limited company

Asstated in the Memorandum and Articles of Association (M & A )of a privatelimited company, the day-to-day operations are vetted to the Board of Directorsas appointed by the Shareholders, normally in Annual General Meeting ( AGM ).So, the powers of directors are all come from the shareholders as stated in theArticles of Association of the company.

For a decision to be made, a simple majority of votes by the directors in thedirectors' meeting or by the shareholders in the general meeting will be fine. However,for some special businesses e.g. a major or fundamental changes in the organization,M & A etc. to be transacted, the resolution must be passed with no lessthan 75% of the votes of the shareholders and with sufficient notice 21 days ofthe meeting in an Extraordinary General Meeting ( EGM ) of the shareholders.These clauses or details are stated in the Articles of Association of thecompany.