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CA Intermediate · Corporate and Other Laws · Management & Administration

At the annual general meeting of Kaveri Agro Ltd, 40 members were present in person and 10 by proxy. Member Rahul holds 2,000 shares and appoints Sunita as proxy. Rahul also attends the meeting personally on the day. What is the legal position regarding the proxy?

Rahul's personal attendance automatically revokes Sunita's proxy, because a proxy is merely a substitute for a member who cannot attend. Rahul can vote himself on his shares, and no separate written notice of revocation is needed for this.

  1. ASunita's proxy remains valid and she may vote instead of Rahul
  2. BBoth Rahul and Sunita may vote, each for half the shares
  3. CRahul's attendance in person automatically revokes the proxy, so only Rahul may voteCorrect
  4. DRahul's attendance has no effect unless he gives written notice cancelling the proxy

Explanation

Under the law of proxies, a proxy is only a substitute for an absent member. When the member attends personally, the appointment is treated as revoked as the member is entitled to vote himself. Hence Sunita cannot vote for Rahul's shares. Written notice of revocation is not required in this situation.

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