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CMA Final · Corporate and Economic Laws · Company Formation and Conversion

Krishna Agro Producer Company Ltd, an erstwhile inter-State co-operative society, wants to re-convert and applies to the Tribunal following a members' resolution. What is the minimum majority required for the general meeting resolution under which the company may make this application?

The resolution must be passed by not less than two-thirds of the members present and voting in the general meeting. The three-fourths figure is relevant only to creditors' requests and the Tribunal-directed meeting, not to this initial members' resolution.

  1. ASimple majority of members present and voting
  2. BNot less than two-thirds of its members present and votingCorrect
  3. CNot less than three-fourths of its members present and voting
  4. DUnanimous consent of all members on the register

Explanation

Under Section 378ZS(1)(a), the resolution must be passed by not less than two-thirds of the members present and voting. The three-fourths figure applies to the value of creditors (on a creditors' request) and to the Tribunal-directed meeting, not to this initial resolution.

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