Manish (CA Final Student) (201 Points)
30 April 2010Q-1
FOR PUBLIC COMPANY
QUORUM REQ - 5 U/S 174
ARTICLE SAID - 10 WILL B QUORUM FOR THE MEETING
QUORUM PRESENT - 7
IN THIS CASE QUORUM IS PRESENT OR NOT? GIVE REASON?
Q-2
FOR PRIVATE COMPANY
QUORUM REQUIRED - 2 U/S 174
ARTICLE SAID - 7 WILL BE THE QUORUM FOR THE MEETING
QUORUM PRESENT - 3
IN THIS CASE QUORUM PRESENT OR NOT? GIVE REASON?
PLZ REPLY SOON
Hiren Doshi
(Chartered Accountant)
(38 Points)
Replied 30 April 2010
As per S.174 of the Comapnies Act, 1956, Quorum means the minimum number of members that must be present in order to constitute the meeting and transact business thereat. Unless article provides otherwise the Quorum is 5 in case of a Public Co. and 2 in case of a Pvt. co. The specified Quorum is to be presented personally.
In respect of your questions meeting is not possible and invalid as Quorum as required by Articles and not fulfilled.
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