CS Executive · Company Law and Practice · General Meetings
The Governor of a State holds shares in Rampur Infra Ltd, a company. She appoints Mr. Iyer to represent her at a general meeting. Which statement is correct under the Companies Act, 2013?
Mr. Iyer is deemed a member of the company and can exercise the same rights and powers as the Governor, including voting by proxy and postal ballot. The Act imposes no need for Board approval and does not limit him to attending or to a show of hands.
- AMr. Iyer is deemed a member and may exercise her rights, including voting by proxy and postal ballotCorrect
- BMr. Iyer may attend only and cannot vote, because the appointment is not a proxy
- CMr. Iyer may vote only on a show of hands and not by postal ballot
- DMr. Iyer needs the company's Board to approve his appointment before he can act
Explanation
Section 112(2) says a person appointed to represent the President or a Governor is deemed a member for the purposes of the Act, with the same rights and powers, including the right to vote by proxy and postal ballot. There is no Board approval requirement and no restriction to attendance or show of hands.
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