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CS Executive · Company Law and Practice · Meetings of Board and its Committees

Kaveri Exports Ltd called a Board meeting on a day when only 1 of its 5 directors was physically present, and no other director joined by video conferencing. The meeting could not be held for want of quorum, and the articles are silent on the matter. What happens under the Act?

The meeting automatically stands adjourned to the same day, at the same time and place in the next week. If that day is a national holiday, it moves to the next succeeding day that is not a national holiday, unless the articles provide otherwise.

  1. AThe meeting stands cancelled and must be called afresh with seven days' notice
  2. BThe meeting automatically stands adjourned to the same day, time and place in the next week, or the next succeeding non-national-holiday if that day is a national holidayCorrect
  3. CThe lone director may decide all urgent matters
  4. DThe meeting is adjourned for 15 days

Explanation

Section 174(4) says that where a meeting cannot be held for want of quorum, unless the articles provide otherwise, it automatically stands adjourned to the same day, time and place in the next week, or if that is a national holiday, to the next succeeding day that is not a national holiday. The other options are not provided in the section.

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