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Companies Law - Voting Rights

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S Satish

CA Intern

29 Points Posted on 24 September 2009

Regards

Satish CA-PCC

Can Someone help me out with an answer

The articles of ABC Limited provided that only those shareholders would be entitled to vote whose names have been there on the Register of Members for two months before the date of the meeting. X, a member, of the ABC Limited was holding 200 equity shares of the company. X transferred his shares to Y before one month from the date on which the meeting was due. The name of Y could not be entered in the Register of Members as the application of transfer of shares was pending. by the company from exercising his voting right on the ground that he has not hold his shares for specified period as provided in the articles before the date of the- meeting.

State whether X can exercise his voting right in the meeting? State also the grounds upon which X may be excluded from exercising his voting rights in the meeting of the shareholders.

Replies (1)

Guest

Posted on 24 September 2009

First of all, let's check the Record date concept.

In every AGM, the person who holds the shares on the Recored date is entilted to vote in the AGM.

In your company, the articles decides the month & not the exact day of the recorde date, so, your articles provision is wrong. Because the provision is ambiguous.

As, which day is to be taken for the purpose of the Record date, can not be detrermind?

However, Answer to your question:

If Mr. X holds the shares on the record date, then he is eligible to vote on the AGM.