Skip to content

CSEET · Business Laws and Management · Elements of Company Law

Under the Companies Act, 2013, a body corporate that is a member of a company may authorise a person to act as its representative at a company meeting. Which of the following correctly describes how this is done and the person's powers?

A body corporate that is a member authorises its representative by a resolution of its Board of Directors or other governing body. That person can exercise the same rights as an individual member could, including voting by proxy and postal ballot.

  1. ABy a resolution of its Board of Directors or other governing body; the person may exercise the same rights and powers, including voting by proxy and postal ballot, as the body corporate could if it were an individual memberCorrect
  2. BBy an order of the National Company Law Tribunal; the person may only attend and not vote
  3. CBy a notification of the Central Government; the person may vote only on a show of hands
  4. DBy a resolution of the company in which it holds shares; the person may vote only by postal ballot

Explanation

The Act provides that a member body corporate authorises its representative by a resolution of its Board or other governing body. The authorised person has the same rights and powers as an individual member, including voting by proxy and postal ballot. The other options invent different authorising bodies or limit the powers.

Did you get it right without looking?

One question tells you little. A timed set on Elements of Company Law shows your real accuracy, how long you take and where you lose marks.

Practise Elements of Company LawFree diagnostic mock

More Elements of Company Law questions