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CA Intermediate · Corporate and Other Laws · Management & Administration

Ganga Foods Ltd has 4,000 members. Ramesh holds 100 shares and wishes to appoint his friend Suresh as proxy for the extraordinary general meeting. Which statement reflects the correct legal position under the Companies Act, 2013 and the rules?

A proxy appointment must reach the company at least forty-eight hours before the meeting. The proxy need not be a member, has no right to speak at the meeting and can vote only on a poll, not on a show of hands.

  1. AThe proxy form must be deposited with the company not less than 48 hours before the meeting, and the proxy has no right to speak at the meetingCorrect
  2. BA proxy must be deposited at least 24 hours before the meeting and can vote on a show of hands
  3. CA proxy can vote on a show of hands and on a poll, and can be appointed at the meeting itself
  4. DA proxy must be a member of the company and can vote only on a poll

Explanation

A proxy instrument must be deposited with the company at least 48 hours before the meeting. A proxy cannot speak at the meeting and cannot vote on a show of hands; he can vote only on a poll. Also, the proxy need not be a member. The 24-hour option, the show-of-hands voting option and the member-only option are therefore incorrect.

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