Fireworks Limited had its AGM on 10th August 2018. After completion of all ordinary business as stated in the AGM notice, there was a commotion and disorder at the meeting subsequent to which the Chairman of the meeting
CS Executive · Company Law · PYQS · December 2018
Fireworks Limited had its AGM on 10th August 2018. After completion of all ordinary business as stated in the AGM notice, there was a commotion and disorder at the meeting subsequent to which the Chairman of the meeting adjourned the meeting to 3rd September, 2018 though members present did not agree for such adjournment. The Chairman further said that the unfinished agenda that were listed in the AGM notice alone will be taken up for discussion at the adjourned meeting. Comment on the action of Chairman with reference to Secretarial Standard 2.
Answer & Explanation:
Secretarial Standard 2-Para 15 deals with the adjournment of meetings. Under that, Chairman of a general meeting may also adjourn a meeting in the event of disorder or other like causes, when it becomes impossible to conduct the meeting and complete its business. In the given case, since there was a disorder and commotion during the meeting, the Chairman was right in adjourning the meeting though the same was not accepted by members present. Further, SS-2 says that at an adjourned meeting, only the unfinished business of the original meeting shall be considered. Hence, the Chairman was right in considering the unfinished special business as set out in the AGM notice in the adjourned meeting.
Topics: Meetings of Board and its Powers
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