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CMA Intermediate · Business Laws and Ethics · Directors - Role, Responsibilities, Qualification, Appointment, Removal, Remuneration and Powers

Under section 160, the deposit paid by a member proposing a person as director is refunded if the proposed person:

The deposit is refunded if the proposed person is elected as a director or secures more than twenty-five per cent of the total valid votes cast, whether on a show of hands or a poll. Attendance or later recommendation does not matter.

  1. AAttends the general meeting
  2. BIs elected as a director or gets more than twenty-five per cent of total valid votes castCorrect
  3. CGets at least fifty per cent of the votes of members present on a show of hands only
  4. DIs later recommended by the Board

Explanation

The deposit is refunded to the person or proposing member if the person gets elected or obtains more than twenty-five per cent of total valid votes cast, on show of hands or on poll. A fifty per cent show-of-hands test is not the statutory condition, and mere attendance is irrelevant.

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