Decoding The Enigma Of Duomatic Principle And Its Application In India
- IJLLR Journal
- Jul 13
- 1 min read
Aditi Yadav, B.B.A LLB (Hons.), O.P. Jindal Global Law School
ABSTRACT
This research paper will explore the practical difficulties that businesses frequently face in trying to comply with the intricate web of shareholder compliance obligations set forth under the Indian Companies Act, 2013. It specifically explores the applicability of the "Duomatic principle," a legal doctrine derived from English Company law. The Duomatic principle provides companies a novel way to speed up decision-making, especially when unanimous consent from all shareholders is obtainable. When the same people serve as shareholders and directors of smaller businesses, this idea can be very helpful. The paper will aim to provide insights into how Indian Corporates might use the Duomatic principle to streamline decision-making procedures while keeping compliant with the Companies Act, 2013 and it's already existing shareholder meeting regulations. It examines the judicial interpretations and implications of this principle, assessing its impact on corporate governance and statutory compliance in India. It further draws a parallel between the Principle of Substantial Compliance and the Duomatic Principle, drawing inference on the loopholes and issues that might prevail.
