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

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

Unless the articles provide otherwise, a Board meeting that fails for want of quorum 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 one.

  1. AIt stands cancelled and must be fresh-noticed
  2. BIt stands adjourned automatically to the same day, time and place in the next week, or the next non-holiday day if that is a national holidayCorrect
  3. CIt stands adjourned to the next day at the same time
  4. DIt proceeds with the directors present

Explanation

Section 174(4) says the meeting automatically stands adjourned to the same day, time and place in the next week, or if that day is a national holiday, to the next succeeding day that is not a national holiday. Cancellation or proceeding without quorum is not provided.

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