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CS Executive · Company Law and Practice · Members and Shareholders

Ananya Textiles Ltd. holds 5,000 fully paid equity shares of Kaveri Foods Ltd. and is entered in its register of members. At the annual general meeting of Kaveri Foods Ltd., Ananya Textiles wishes to be represented. Under the Companies Act, 2013, how can it do this?

A body corporate that is a member can authorise any person it thinks fit as its representative at a company meeting, by a resolution of its Board of Directors or other governing body. That person exercises the same rights as an individual member.

  1. ABy a resolution of its Board of Directors or other governing body authorising a person it thinks fit to act as its representative at the meetingCorrect
  2. BOnly by appointing a director of Kaveri Foods Ltd. as its representative
  3. CIt cannot attend, because only natural persons can be members of a company
  4. DOnly by the managing director of Ananya Textiles signing a proxy form without any board resolution

Explanation

A body corporate that is a member may, by resolution of its Board or other governing body, authorise any person it thinks fit to act as its representative at any meeting of the company. Such person has the same rights as an individual member, including voting by proxy and postal ballot. Option B wrongly restricts the choice of representative, and option C is wrong because a body corporate can be a member.

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