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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 contain no provision on the matter. What does section 174 provide?

Unless the articles provide otherwise, the meeting automatically stands adjourned to the same day, time and place in the following week. If that day is a national holiday, it moves to the next day that is not a national holiday, at the same time and place.

  1. AThe meeting stands cancelled and a fresh notice of seven days is needed
  2. BThe meeting automatically stands adjourned to the same day, time and place in the next week, or if that is a national holiday, the next succeeding day which is not a national holidayCorrect
  3. CThe meeting proceeds with the directors present, who may pass ordinary resolutions
  4. DThe meeting stands adjourned to the same time and place after fourteen days

Explanation

Section 174(4) provides that, unless the articles otherwise provide, a meeting not held for want of quorum automatically stands adjourned to the same day, time and place in the next week, or the next succeeding non-national-holiday if that day is a national holiday. No fresh notice is required.

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