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CS Executive · Company Law and Practice · General Meetings

Members of Gram Udyog Producer Company holding one-fifth of the voting members sign a written requisition asking the Board to call an extraordinary general meeting. Under the Producer Company provisions, what is the position?

The requisition is insufficient. For a Producer Company, the Board must call an extraordinary general meeting only on a signed written requisition stating the matters, made by one-third of the Members entitled to vote. A one-fifth requisition does not meet that threshold.

  1. AThe Board must call the meeting because any requisition in writing binds it
  2. BThe requisition is insufficient, as it must be made by one-third of the Members entitled to voteCorrect
  3. CThe requisition is valid only if made by a majority of Members
  4. DThe requisition is valid if made by one-tenth of Members

Explanation

Section 378ZA(5) requires a written, signed requisition setting out the matters, made by one-third of the Members entitled to vote. One-fifth falls short, so the Board is not bound to proceed on it.

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