CA Intermediate · Corporate and Other Laws · Management & Administration

Bharat Polymers Ltd, a listed company, received a valid requisition from members holding 12% of the paid-up share capital carrying voting rights, asking for an extraordinary general meeting. The Board did not call the meeting within 21 days from the date of receipt of the requisition. What is the legal position?

The requisitionists may themselves call the extraordinary general meeting within three months of the requisition, because the Board failed to call it within 21 days. The company must reimburse their reasonable expenses, which are recoverable from the defaulting directors' fees or remuneration. No Tribunal or Registrar permission is required.

1. AThe requisitionists may themselves call the meeting within three months of the requisition, and the company must reimburse their reasonable expenses, recovered from fees or remuneration of defaulting directorsCorrect
2. BThe requisition lapses and the members must submit it again after six months
3. COnly the Tribunal can call the meeting, and members cannot call it
4. DThe requisitionists may call the meeting only after obtaining permission from the Registrar, and the expenses are borne by them