Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
23 June 2011The AOA of a company stipulates that there will not be quorum in a board meeting unless Mr. A or wife of A is present. Mr. A holds majority shares.
Can this be valid . Look, section 287 does not give you a liberty to look beyond the provisions of CA 1956... it does not provide.."unless the AOA conatins otherwise.."
NIKITA
(CA )
(302 Points)
Replied 23 June 2011
Min quorum for a private co. is 2 members personally present & 5 for public co. AOA provides for the minimum qourum bt it cant be less than the above limits..
Jaideep
(Service)
(1368 Points)
Replied 24 June 2011
The aforesaid clause is valid.
Regards
Jaideep Pandya
Aparna Raja K.C
(Student)
(520 Points)
Replied 24 June 2011
Agree with nitika
any how, quoram can be less than the no. specified in act or AOA if, the no. of members falls below the specified limit of 2 or 5 :)
And more over, AOA cannot hold a clause that can over ride any section of Companies Act :)
So the clause that Mr. A or Mrs A should be present to consider a qurom is not calid :)
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