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Can share holders delegate their right.....???

CA MAYANK (CA) (1219 Points)

10 November 2011

Can Share solders delegate their right to fill the casual vacancy of audior due to reginetion to the BOD???

If yes then in which section or Judgment??

Thanks to All in advance..:-)

Regards::

Mayank Bansal

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12 Replies

CA MAYANK (CA) (1219 Points)
Replied 10 November 2011

ashish gupta ( student) (1922 Points)
Replied 10 November 2011

I dont think sharelhoders can delegate their power to BOD.

1 Like

CA MAYANK (CA) (1219 Points)
Replied 10 November 2011

Thanks for reply

I am also agree with you bro.

but as par the above scan Pic share holder can delegate it.

It make me cnfuj.

ashish gupta ( student) (1922 Points)
Replied 10 November 2011

dont pay attention to that and trust what you have studied.

CA MAYANK (CA) (1219 Points)
Replied 10 November 2011

It is of CA CLUB INDIA Mock test paper

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 10 November 2011

Casual vacany can only be filled by the BOD.

I don't remember the section now. U can check the appointment of auditor in PCC books ...its specifically there.

Shareholders can take part in the procedure of appointment of auditor while during AGM ...

Not otherwise.

ashish gupta ( student) (1922 Points)
Replied 10 November 2011

BOD can fill the casual vacancy but if the reason of vacancy is resignation of auditor than shareholders appoint the auditor.

ACCOUNTANT (Student) (559 Points)
Replied 14 November 2011

Anyone of you.....please clear this doubt of me........

Why is it not allowed for BOD to appoint the auditor.........once the shareholder allow for that appointment.....probably in some egm called thereon....??

ACCOUNTANT (Student) (559 Points)
Replied 14 November 2011

Moreover for the above ques.......when both choices are given though "no" may be correct ans.......the prior one would be more appropriate......

NANDINI MASAND (learner ) (330 Points)
Replied 15 November 2011

HI,
As far as i know .......No one can DELEGATE their right neither the director nor the shareholders .....exept to the proxy w.e.a. under the compnies act 1956.

ashish gupta ( student) (1922 Points)
Replied 15 November 2011

@ SWETHA DONT GO WITH WHAT SHOULD BE APPROPRIATE, WHAT IS WRITTEN IN THE ACT IS TO BE SEEN

ACCOUNTANT (Student) (559 Points)
Replied 15 November 2011

Please refer the below topic...

Provisions in the articles

Most companies have the following provision from the Model Articles or (for older companies) from Table A.

Shareholders' reserve power

4. (1) The shareholders may, by special resolution, direct the directors to take, or refrain from taking, specified action.

This is an extract from a uk law mat (https://www.companylawclub.co.uk/topics/what_is_the_difference_between_shareholders_and_directors.shtml).

......why not the same provision be existing in the Indian law..