CMA Intermediate · Business Laws and Ethics · Rights of Shareholders
Under the Companies Act, 2013, a member of a company limited by shares who holds equity share capital has a right to vote on a poll in proportion to which of the following?
On a poll, an equity shareholder's voting right is proportionate to his share in the company's paid-up equity share capital, as laid down in Section 47(1)(b). Authorised capital and length of membership are irrelevant, and equal votes per member do not apply to a poll.
- AHis share in the paid-up equity share capital of the companyCorrect
- BHis share in the authorised share capital of the company
- CThe number of years for which he has been a member
- DOne vote per member irrespective of shareholding
Explanation
Section 47(1)(b) states that the voting right of an equity shareholder on a poll is in proportion to his share in the paid-up equity share capital. Authorised capital is not the basis, and the one-member-one-vote rule applies only on a show of hands, not on a poll.
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