Edge Ltd. was incorporated in November, 2021 in Odisha with the objective of manufacturing water purifier. The plant was commissioned in May, 2022 at a cost of ₹400 crore. It was financed partly by the promoters (80%) an

CS Executive · Company Law and Practice · PYQS · June 2025
Edge Ltd. was incorporated in November, 2021 in Odisha with the objective of manufacturing water purifier. The plant was commissioned in May, 2022 at a cost of ₹400 crore. It was financed partly by the promoters (80%) and balance from bank loan. Currently, Edge Ltd. is not a listed company but plans to get listed in next year. Over a period of time, Edge Ltd. has evolved to become one of India's top ten manufacturer of water purifier and is also eyeing to have a share in the export market. It won an award in an all India based trade fair organised by a Chamber of Commerce. The company has now 300 members. The Board consists of ten directors. Case IV: 29% of equity in the company is held by the Government of Odisha in the name of the Governor of the State. When the company proposed to hold its annual general meeting (AGM) for the last year, the Collector of the district of Ganjam where the company is situated insisted on receiving the notice of the AGM and wanted to attend the meeting. Based on the above facts and integrated case, answer the following referring to the provisions of Companies Act, 2013: (d) In respect of notice of AGM comment on the legality of claim of Collector to receive meeting notice.

Answer & Explanation:

As per section 112 of the Companies Act, 2013 read with Para 3.2 of SS-2, when the President of India or the Governor of a State is a member of a company, he may appoint such person as he thinks fit to act as his representative at any meeting of the company or at any meeting of any class of members of the company. A person so nominated shall be deemed to be a member of the company and shall be entitled to exercise the same rights and powers, including the right to vote by proxy and postal ballot, as the President or Governor as the case may be, could exercise as a member of the company. In view of the above, unless the Collector of the District of Ganjam is nominated by the Governor of Odisha, he is not entitled to receive the notice of the AGM and he cannot be permitted to attend the meeting.

Topics: Meetings of Board and its Powers

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