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CS Executive · Company Law and Practice · General Meetings

Shree Farmers Producer Company has 400 Members and its articles do not prescribe a larger quorum. A meeting of the first AGM is convened, and 90 Members attend. What is the position about quorum for the AGM?

Quorum is not present. Unless the articles provide a larger number, one-fourth of the total Members of a Producer Company is the quorum for its AGM. One-fourth of 400 is 100, and only 90 Members attended, so the meeting lacks quorum.

  1. AQuorum is present, as one-fourth of 400 is 100 and 90 is close enough
  2. BQuorum is not present, as one-fourth of the total number of Members, being 100, is requiredCorrect
  3. CQuorum is present, as 90 exceeds one-fifth of Members
  4. DQuorum is not present, as one-half of Members, being 200, is required

Explanation

Under section 378ZA(9), unless the articles provide a larger number, one-fourth of the total number of members forms the quorum for the AGM. One-fourth of 400 is 100, so 90 present is short by 10. The one-half figure is not the statutory rule.

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