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CA Intermediate · Corporate and Other Laws · Management & Administration

At the general meeting of Sagar Foods Ltd, an ordinary resolution on a related matter is put to a show of hands. Before the show of hands is declared, a member demands a poll. Which statement is correct about the position of the demand for a poll in a company having a share capital?

A poll may be ordered by the chairman on his own motion or demanded by members holding the prescribed voting power or paid-up capital. The demand can be made before or on the declaration of the result of the show of hands, so a prior demand is valid.

  1. AA poll can be demanded only after the result of the show of hands is declared and not before
  2. BA poll can be demanded only by the chairman
  3. CA poll can be ordered by the chairman suo motu, or demanded by members with specified voting power or paid-up capital, before or on the declaration of the result of the show of handsCorrect
  4. DA poll cannot be taken if a show of hands has been conducted

Explanation

The chairman may order a poll on his own motion, and members holding the prescribed voting power or paid-up capital may demand one, before or on the declaration of the result of the show of hands. So a demand made before the declaration is valid. The distractor stating that a poll is allowed only after the declaration is wrong, since the demand can be made before or on the declaration.

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