The Board of a company had total strength of 12 directors. There was a vacancy of two directors in the Board. Referring to the provisions of the Companies Act, 2013 answer the following: (ii) In case, nine directors are
CS Executive · Company Law · PYQS · December 2022
The Board of a company had total strength of 12 directors. There was a vacancy of two directors in the Board. Referring to the provisions of the Companies Act, 2013 answer the following: (ii) In case, nine directors are interested in a particular matter which is to be discussed in a meeting, what shall be the quorum for the meeting under such scenario?
Answer & Explanation:
According to Section 174(3) of Companies Act, 2013, where at any time the number of interested Directors exceeds or is equal to two thirds of the total strength of the Board of Directors, the number of Directors who are not interested Directors and present at the meeting, being not less than two, shall be the quorum during such time. Hence, the interested directors are excluded and hence, the remaining three directors will form the quorum.
Topics: Meetings of Board and its Powers
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