Star Ltd is a company incorporated in Tamil Nadu in which 26% of the equity is held by the Government of Tamil Nadu in the name of the Governor of the State. When the Company proposed to hold its annual general meeting f
CS Professional · Advanced Company Law and Practice · PYQS · December 2018
Star Ltd is a company incorporated in Tamil Nadu in which 26% of the equity is held by the Government of Tamil Nadu in the name of the Governor of the State. When the Company proposed to hold its annual general meeting for the year 2017-18, the Collector of the District of Vellore where the company is situated, insisted on receiving the notice of the AGM and wanted to attend the meeting. Examine the legality of the claim.
Answer & Explanation:
As per Section 112 of the Companies Act, 2013, 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 Vellore is nominated by the Governor of Tamil Nadu, he is not entitled to receive the notice of the AGM and he cannot be permitted to attend the meeting.
Topics: General Meetings
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