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CS Executive · Setting Up of Business, Industrial and Labour Laws · Corporate Entities - Companies

Bharat Holdings Ltd, a body corporate, holds shares in Kaveri Foods Ltd. Bharat Holdings wants someone to attend and vote at Kaveri Foods' general meeting on its behalf. Under the Companies Act, 2013, how can it do this?

Bharat Holdings can pass a resolution of its Board or other governing body authorising any person it thinks fit to represent it at the meeting. That representative can exercise the same rights as an individual member, including voting by proxy and postal ballot.

  1. ABy a resolution of its Board of Directors or other governing body authorising a person it thinks fit as its representativeCorrect
  2. BOnly through its managing director, without any resolution
  3. CBy appointing a representative who may attend but can never vote by proxy or postal ballot
  4. DBody corporates cannot attend meetings of another company

Explanation

Section 113 allows a body corporate that is a member to authorise, by resolution of its Board or other governing body, any person it thinks fit to act as its representative at the company's meetings. That person has the same rights as the body corporate could exercise as an individual member, including voting by proxy and postal ballot. The option denying voting rights is wrong for that reason.

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