(1)Any business which is to be transacted by the Board or the Committee may, if the Chairman of the Board or of the Committee so directs, be referred to members by circulation of papers and any resolution or proposal so circulated and approved by the majority of members, who have recorded their views in writing, shall be as effectual and binding as if such resolution or proposal were decided by the majority of members at a meeting;Provided that at least nine members of the Board or a majority of the members of the Committee, as the case may be, have recorded their view of the resolution or proposal;Provided further that when a resolution or proposal is referred to members by circulation of papers, any five members of the Board or three members of the Committee, as the case may be, may require that the resolution or proposal be referred to members at a meeting and thereupon such reference shall be made to members at a meeting of the Board or the Committee, as the case may be.(2)When any business is referred to members by circulation, a period of not less than 14 clear days in the case of the Board and 10 clear days in the case of a Committee shall be allowed for receipt of replies from members. Such period shall be reckoned from the date on which the notice of business is issued.(3)Transaction of business by circulation should be resorted to only in special circumstances or reasons to be recorded in writing. If a resolution or proposal is circulated, the result of the circulation shall be communicated to all the members of the Board or of the committee, as the case may be. A copy of the resolution or proposal circulated and the result of the circulation shall also be communicated to the Government of India.
