A company has 11 members out of which 1 is individual and other 10 are corporates represented by 1 single person. what shall be number of members present for the meeting in AGM in MGT 7. will it be 2 (one individual and other representative of 10 members) or all 11 members ( 1 individual and 10 through representatives?
5 Replies
Shrikant
(Associate)
(350 Points)
Replied 05 December 2018
Quorum will be 11 members in this case. But you will also have to go by section 105 of the Companies Act, 2013 alongwith wilth relevant rules which provides for 'Proxies'. A person can act as proxy on behalf of members not exceeding fifty and holding in the aggregate not more than ten percent of the total share capital of the company carrying voting rights. Check the total holding of those 10 corporates and ensure it does not exceed 10% of the total share capital.
kapil gupta
(217 Points)
Replied 05 December 2018
Quorum will be 11 members
As per section 112 of Companies Act,2013 a person holding represntation of body corporate shall be DEEMED TO BE THE MEMBER and such person shall enjoy all the rights even right to appoint proxy.
Also there shall be presence of 2 persons for coducting the general meeting which is fulfilled by your problem.
Therefore,Such meeting shall be valid
Changing facts of your case:- if any sole member beside his membership holding representation of 4 body corporate
Then in legal sense quorum will be complete i.e. 5 but meeting will not be valid as there shall be physical presence of 2 members
Same was held in case of :- James prain and sons Ltd.
Thanks.
As per section 112 of Companies Act,2013 a person holding represntation of body corporate shall be DEEMED TO BE THE MEMBER and such person shall enjoy all the rights even right to appoint proxy.
Also there shall be presence of 2 persons for coducting the general meeting which is fulfilled by your problem.
Therefore,Such meeting shall be valid
Changing facts of your case:- if any sole member beside his membership holding representation of 4 body corporate
Then in legal sense quorum will be complete i.e. 5 but meeting will not be valid as there shall be physical presence of 2 members
Same was held in case of :- James prain and sons Ltd.
Thanks.
Priya
(Professional)
(117 Points)
Replied 11 December 2018
If in case only 2 members are are present in the meeting one Individual and other representative of a body corporate. This fulfils the minimum quorum requirement. and percentage of shareholding shall be percentage of both the shareholders.
Is this ok?
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