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CSEET · Economic and Business Environment · Elements of Corporate Governance

Under Section 178, what is the position regarding attendance at general meetings by the committees constituted under that section?

The chairperson of each committee constituted under Section 178, or in his absence another member authorised by him, shall attend the general meetings of the company. This makes the committees accountable to shareholders, who are able to raise questions on committee matters directly.

  1. AOnly the company secretary need attend on behalf of the committees
  2. BThe chairperson of each committee, or any other member authorised by him in his absence, shall attend the general meetingsCorrect
  3. CNo committee member is required to attend general meetings
  4. DOnly independent directors of the Board must attend

Explanation

Section 178(7) says the chairperson of each committee, or in his absence any other member authorised by him, shall attend general meetings. This makes committees answerable to shareholders, so the other options are inconsistent with the text.

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