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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Stakeholders Rights

Gomti Foods Ltd's Stakeholders Relationship Committee is chaired by Mr. Rao, who will be travelling on the date of the annual general meeting. Under the Companies Act, 2013, what is the correct arrangement for attending the general meeting?

Mr. Rao may authorise another member of the committee to attend the general meeting in his absence. Section 178(7) requires the chairperson of each committee, or any other member authorised by him, to attend general meetings, so attendance is not optional.

  1. AMr. Rao may authorise another committee member to attend in his absenceCorrect
  2. BThe Company Secretary attends automatically in place of the chairperson
  3. CAttendance is optional for chairpersons of committees under section 178
  4. DOnly the Chairman of the Board may attend for all committees

Explanation

Section 178(7) requires the chairperson of each committee under that section, or in his absence any other member authorised by him, to attend general meetings. So Mr. Rao can authorise a committee member. Attendance is not optional, and the Company Secretary has no automatic substitute role.

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