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CS Executive · Company Law and Practice · General Meetings

Mehta Overseas India Pvt Ltd is an ordinary Indian company whose Board wishes to call an EGM at a hotel in Dubai. Which statement is correct under the Companies Act, 2013?

The company cannot hold the EGM in Dubai. An EGM must be held at a place within India, and the only exception is a wholly owned subsidiary of a company incorporated outside India. Board discretion does not override this.

  1. AIt cannot, because an EGM must be held at a place within India, the exception being only a wholly owned subsidiary of a foreign companyCorrect
  2. BIt can, because the Board may call an EGM wherever it deems fit
  3. CIt can, if a majority of directors approve the venue
  4. DIt can, if the Registrar is informed one day earlier

Explanation

The Board may call an EGM whenever it deems fit, but the proviso requires the meeting to be held at a place within India. The only exception is a wholly owned subsidiary of a company incorporated outside India. An ordinary company cannot hold it in Dubai.

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