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CA Intermediate · Corporate and Other Laws · Management & Administration

Shreya Textiles Ltd, an unlisted public company, wants to hold its annual general meeting at a short notice of 14 days instead of 21 days. Under the Companies Act, 2013, what is the minimum consent required to hold a general meeting at shorter notice for an AGM?

An annual general meeting can be called at shorter notice only with the consent of all members entitled to vote. The lower threshold of members holding 95% of paid-up voting capital applies to other general meetings, not the AGM, so it cannot be used here.

  1. AConsent of all the members entitled to voteCorrect
  2. BConsent of members holding at least 95% of the paid-up share capital giving a right to vote
  3. CConsent of members holding at least 75% of the paid-up share capital giving a right to vote
  4. DConsent of a simple majority of the directors present

Explanation

An AGM may be called on shorter notice only if consent is given in writing or electronically by all the members entitled to vote at it. The 95% threshold applies to general meetings other than the AGM, so option B is wrong for an AGM.

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