Question

In a scenario where the number of interested directors on a company’s Board of Directors is equal to or exceeds two-thirds of the total Board strength, which of the following statements accurately describes the quorum requirements for such meeting under the Companies Act?

Q: Answer-In a scenario where the number of interested directors on a company’s Board of Directors is equal to...

Section 174. Quorum for meetings of Board 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.

A The quorum for the meeting is determined by having at least one-third of the total number of directors present, provided that there are no less than two non-interested directors in attendance

B If two-thirds or more of the Board consists of interested directors, the meeting can proceed as long as at least one non-interested director is present, regardless of the total number of directors

C The meeting can be held with the presence of any number of interested directors, but the quorum is specifically the presence of at least two non-interested directors, who must be present for the meeting to proceed

D In such a case, the quorum requires at least two non-interested directors to be present, and there is no requirement for a minimum number of interested directors to be present

E When the number of interested directors reaches or exceeds two-thirds of the Board strength, the quorum is the presence of a majority of interested directors, with no specific requirement for non-interested directors.

Practice Next

In a scenario where the number of interested directors on a company’s Board of Directors is equal to or exceeds two-thirds of the total Board strength, which of the following statements accurately describes the quorum requirements for such meeting under the Companies Act?

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