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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Stakeholders Rights

The chairperson of the Stakeholders Relationship Committee of Kaveri Foods Ltd cannot attend the annual general meeting due to illness. Under Section 178, who may attend in the chairperson's place?

Any other member of the committee authorised by the chairperson may attend. Section 178(7) allows this substitution in the chairperson's absence, but the substitute must be a committee member authorised by the chairperson, not a nominee of the managing director or an automatic attendance by the company secretary.

  1. AAny member of the committee authorised by the chairperson for this purposeCorrect
  2. BThe company secretary, automatically
  3. CAny director nominated by the managing director
  4. DNo substitute is allowed; attendance is mandatory only for the chairperson

Explanation

Section 178(7) requires the chairperson of each committee to attend general meetings or, in his absence, any other member of the committee authorised by him. The authorisation must come from the chairperson and the substitute must be a committee member, so the company secretary or a director nominated by the MD does not qualify.

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