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CA Intermediate · Corporate and Other Laws · Management & Administration

Bharat Polymers Ltd has 10 lakh equity shares. A requisition under the Companies Act, 2013 for an extraordinary general meeting is made by members. The Board does not call the meeting within 21 days of receipt of a valid requisition. Which of the following correctly states the position?

If the Board fails to call the meeting on a valid requisition within 21 days, the requisitionists may call it themselves, and it must be held within three months of delivery of the requisition. No Tribunal order is needed, and the Registrar does not call it.

  1. AThe requisitionists may themselves call the meeting, and it must be held within three months of the date of delivery of the requisitionCorrect
  2. BThe requisitionists must apply to the Tribunal before calling the meeting
  3. CThe requisition lapses and may be renewed only after one year
  4. DThe Registrar must call the meeting within 45 days

Explanation

If the Board does not proceed to call a meeting within 21 days from receipt of a valid requisition (to hold it within 45 days), the requisitionists may call the meeting themselves, which must be held within three months from the date of delivery of the requisition. No Tribunal order is needed. The requisition does not lapse and the Registrar has no role.

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