A Ltd had 9 Directors on its Board A Board Meeting was convened on 15th of the month On that day 7 o...........

Companies Act-Phase (I & II) Board-powersandMeetings

A. Ltd had 9 Directors on its Board. A Board Meeting was convened on 15th of the month. On that day, 7 of the Directors were on visit to a Regional Conference. The meeting was conducted by the remaining two and a letter jointly signed by the 7 absentee member Directors was obtained as a No Objection for lack of Quorum. Is the BM legal if absentee Directors waive Quorum in writing ?

No, as Quorum is fixed by the Act and cannot be reduced by Co (only specific businesses can be done when Quorum falls)

Yes, Quorum can be reduced if over 2/3rd Directors consent to do so

Yes, Quorum is a just a guiding principle and can be waived by written declaration

Yes, provided Independent Directors unanimously approve the same

छोटे Courses बड़े Results

Master Board-powersandMeetings

Prepare through Micro-courses

Try Now

Explanation:

According to Sec “174 (3) 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.

Explanation.—For the purposes of this sub-section, “interested director” means a director within the meaning of sub-section (2) of section 184.”