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Director who is also shareholder

Varun (CA Final) (210 Points)

06 October 2016

A Director of a company is also a shareholder in it. Can he exercise voting rights in the general meeting as a member?

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sivabommakanti (CA - Tax Consultant) (267 Points)
Replied 06 October 2016

Yes. His duties as a director are fiduciary. So he can't vote on any related party transactions in board meeting. But his rights as a shareholder are of his personal interest and can vote on all resolutions put up in general meeting except for s188 transactions. However this restriction is also doesnt apply for a pvt co.

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