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CS Executive · Company Law and Practice · Introduction to Company Law

Anand Growers Producer Company is an erstwhile inter-State co-operative society. It wants to apply to the Tribunal for re-conversion to an inter-State co-operative society, acting through a general meeting resolution of its members. What majority of members is required for that resolution under the Act?

A resolution passed by not less than two-thirds of the members present and voting in a general meeting is needed. Under section 378ZS(1)(a), this lets the Producer Company apply to the Tribunal for re-conversion; the three-fourths test relates to creditors.

  1. ASimple majority of members present and voting
  2. BNot less than two-thirds of members present and votingCorrect
  3. CThree-fourths of all members on the register
  4. DUnanimous consent of all members

Explanation

Section 378ZS(1)(a) requires a resolution passed by not less than two-thirds of the members present and voting. The three-fourths value figure applies to creditors who request the re-conversion, not to the members' resolution.

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