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Proportional representation

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Tell With example u/s163 proportional representation for appointment of directors... Thanks in advance

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1 Replies

Ram Kumar (188 Points)
Replied 09 February 2016

Dear Ravi,

Please find the details.

Method of Appointment through Proportional Representation:-

(1) Single transferable vote: In this method, suppose there are six candidates and out of which 3 are to be elected. Then a Shareholder is eligible to cast a total of Three votes, which he can cast in favour of candidates in accordance with his preferance.

(2) Cumulative voting: In this method, suppose there are six candidates. Then a Shareholder is eligible to cast a total of Six votes, which he can cast in favour of one candidate or distribute his six votes among different candidates.

(3) Other methods: The Company may adopt methods other than the above two as approved by the Members of the Company in the General Meeting and provisioned in the Articles of Association of the Company.