Question
Consider the following statements regarding the quorum
for Board meetings under Section 174 of the Companies Act, 2013: Statement 1: The quorum for a Board meeting is one-third of the total number of directors or 2 directors, whichever is higher. Statement 2: Directors participating through video conferencing or other audio-visual means are counted toward the quorum. Statement 3: If the number of interested directors exceeds two-thirds of the total board strength, only non-interested directors need not attend for quorum. Statement 4: If quorum is not present, the continuing directors can proceed with appointing new directors to meet quorum requirement. Which statements are correct?Solution
Section 174 of the Companies Act, 2013 prescribes board quorum. Statement 1 is correct—this is the standard quorum requirement. Statement 2 is correct—Section 174(1) explicitly states that participation through audio-visual means counts for quorum. Statement 4 is correct—Section 174(2) provides that continuing directors can act to appoint additional directors when quorum is not met. Statement 3 is incorrect because Section 174(3) states that when interested directors exceed two-thirds, the non-interested directors present (not less than two) form the quorum; interested directors must recuse themselves and not participate. Statements 1, 2, and 4 are correct.
What is the maximum period under Section 110 of CrPC, for furnishing security prescribed for keeping good behaviour?
According to Article 24 of the Constitution, what is the restriction regarding the employment of children?
A dominant steel manufacturer imposed a requirement on its distributors to maintain minimum markup percentages and not stock competitors' products. Dis...
Under Section 17 of the SARFAESI Act, 2002, any person aggrieved by measures taken by the secured creditor under Section 13(4) may file an application b...
In the case of Bachan Singh v. State of Punjab the Court held that_______________
The main principles which underline the law of evidence are
 Penalty for non- compliance of order of any of the Commissions is:
Which of the following is not true about Transfer of property defined as per s. 5 of the Transfer of Property act:
Section 6 of the DSPE Act is titled as:
The official document entitling the holder to a ration of food issued by the government of India is known as____________
Relevant for Exams:
