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CS Executive · Company Law and Practice · Legal Status and Types of Registered Companies

Lotus Holdings Ltd authorised Mr. Anil Shah by a board resolution to represent it at a meeting of Orchid Ltd, in which it is a member. Which of the following can Mr. Shah do, in line with the Companies Act, 2013?

Mr. Shah, duly authorised by the board resolution, can exercise the same rights and powers as Lotus Holdings could exercise if it were an individual member, including voting by proxy and by postal ballot.

  1. AExercise the same rights and powers as Lotus Holdings could exercise as an individual member, including voting by proxy and postal ballotCorrect
  2. BAttend only as an observer without any right to vote
  3. CVote only on a show of hands and never by postal ballot
  4. DExercise rights only after Orchid Ltd approves him by special resolution

Explanation

The authorised person is entitled to exercise the same rights and powers, including the right to vote by proxy and by postal ballot, that the body corporate could exercise if it were an individual member. The observer-only and show-of-hands-only options restrict those rights wrongly. No approval of the investee company is required.

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