Tuesday, February 28, 2012

Quorum-General meeting-case study


A person attending the General meeting of a Company representing one Company under Section 187 of the Companies Act, 1956 besides representing himself as a member. Will he be counted as two persons for the purpose of Quorum?
A person representing one Company under Section 187 is deemed to be a member of the Company. Thus, the person representing a Company under Section 187 of the Companies Act, 1956 and also himself as a member shall be counted as two persons for the purpose of Quorum. So the person attending the meeting in two different capacities shall be counted as two persons.
At an adjourned meeting of a public Company, after half an hour after the scheduled time finds that only three persons are present. Can the Chairman declare the meeting closed for want of Quorum?
According to Section 174(5), if at the adjourned meeting, Quorum is not present within half an hour of the prescribed time, the members present shall be the Quorum. Hence here in this case, the Chairman cannot declare the meeting closed for want of Quorum.

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