quorum for a class meeting

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CA Raminder singh (Querist)
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13 May 2009 what is the quorum for a class meeting of preference shareholders?

Is it "5 members present in person or proxy" or even a single member having proxies of all the shareholders constitute a qourum?

What if there is only one member holding all the shares?

Ankur Garg

Ankur Garg (Expert)
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13 May 2009 Your problem is governed by Section-170 of the Companies Act, 1956.

Section-170 (2) and rule 7 of Companies (Central Government's) General Rules and Forms, 1956 deal with class meetings.

As per section -170 (2) (ii) unless the articles of the company otherwise provide sections-171 to 175 and section 177 to 186 shall apply with respect to meetings of any class of members.

So Section-174 is applicable to class meetings unless the articles of the company otherwise provide.

If your company is a Private Company then quorum would be 2 members personally present.

If your company is a Public Company then quorum would be 5 members personally present.

if there is only one member holding all the shares then it is a case of one man meeting which is acceptable in company law as per my opinion.

Please note proxy is not counted in quorum.

Regards

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