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CMA Final · Corporate and Economic Laws · Board Meetings and Procedures

A Board meeting of a company could not be held for want of quorum, and the articles do not provide otherwise. Under section 174(4), what happens to the meeting?

The meeting automatically stands adjourned to the same day, time and place in the following week, unless the articles say otherwise. If that day is a national holiday, it is held on the next succeeding day that is not a national holiday, at the same time and place.

  1. AIt stands cancelled and a fresh notice of seven days is required
  2. BIt automatically stands adjourned to the same day, time and place in the next week, or the next succeeding day that is not a national holiday if that day is a national holidayCorrect
  3. CIt proceeds with the directors present as a valid meeting
  4. DIt stands adjourned to the same time and place after fourteen days

Explanation

Section 174(4) provides that, unless the articles otherwise provide, a meeting that cannot be held for want of quorum automatically stands adjourned to the same day, time and place in the next week. If that day is a national holiday, it moves to the next succeeding day which is not one.

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