Page 323 - DMGT407Corporate and Business Laws

Corporate and Business Laws

Notes (a) in the case of a public company having a share capital, by any member or members
present in person or by proxy and holding shares in the company: (i) which confer a power
to vote on the resolution not being less than 1/10th of the total voting power in respect of
the resolution; or (ii) on which an aggregate sum of not less than fifty thousand rupees has
been paid-up;
(b) in the case of a private company having a share capital, by one member, present in person
or by proxy if not more than seven members are personally present and by two members
present in person or by proxy, if more than seven members are personally present;
(c) in the case of any other company, by any member or members present in person or by
proxy and having not less than 1/10th of the total voting power in respect of the resolution.
The chairman of the meeting may regulate the manner in which the poll should be taken. He
must appoint two scrutinizers to scrutinize the votes given on the poll and to report thereon to
him. Then the chairman will declare the result.
Voting by companies and government as members (Ss. 187-187-A). Where a company or a
corporation is a member of another company, it may attend the meetings of the other company
through a representative. The representative must be appointed by a resolution of the Board of
Directors or the other governing body. Where the Central Government or a State Government
is a member, the President or the Governor of the State, as the case may be, has the power to
appoint representatives to attend meetings of the company. The person nominated shall hold
the position of a proxy.

Self Assessment

Fill in the blanks:

10. Every member of the company is entitled to a ………………..of every general meeting.
11. A number of members of any body sufficient to transact business at a meeting is
a…………………..

12. When persons present in a meeting indicate their approval or disapproval of the motion
by clapping of hands, cheering or applause, it is known as voting by…………………...

13.5 Motions, Resolutions and Amendments

Decisions of a company are taken by resolution of its members, passed at their meetings. Also,
the Board of Directors takes certain decisions at its meeting by passing certain resolutions after
due deliberations.

The term ‘motion’ indicates a proposition made at a meeting by any member. Such a motion
may be passed without any change or modification. But if some members feel that the motion in
the form proposed needs some change or modification, they may move an amendment.
A motion when passed with or without amendment is called a resolution.
A motion should always be in writing and before it is brought before the meeting, the necessary
notice must be given.

Did u know? Who is a mover?
A person proposing a motion is called the mover and the motion should be signed by him.

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