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CS Professional · Compliance Management, Audit and Due Diligence · Compliance Framework

Ganga Holdings Ltd., a member of Sunrise Ltd., wants its employee to attend Sunrise Ltd.'s general meeting on its behalf. Which compliance step does the Companies Act, 2013 provide for this?

Ganga Holdings should pass a resolution of its Board or other governing body authorising a person as its representative. Section 113 allows this, and the representative may exercise the same rights as the body corporate, including voting by proxy and postal ballot.

  1. AA resolution of the Board of Directors or other governing body of Ganga Holdings authorising a person to act as its representativeCorrect
  2. BA letter from the company secretary of Sunrise Ltd. nominating the person
  3. CAppointing a firm as inspector for the meeting
  4. DNo authorisation is possible, since a body corporate cannot attend a meeting

Explanation

Section 113(1)(a) allows a body corporate that is a member to authorise, by resolution of its Board or other governing body, any person as its representative at the company's meetings. That person can exercise the same rights as the body corporate itself, including voting by proxy and postal ballot. A letter from the other company has no such effect.

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