Question

Write Short Notes on the following:
Invalid Resolution.

Answer 1

A resolution of the board of directors may be incorrect either in form or in contents if the articles of association or regulations of the Limited Liability Companies Act have not been applied to the resolution. A resolution may be in violation of law or the articles of association as to its form, for instance, if:

• it lacks quorum;
• the provisions on disqualification are breached; or
• the majority required for the decision-making is lacking.