Mr. A and Mr. B are joint holders of 5,000 equity shares of XYZ Limited. The company has a total share capital of 40,000 equity shares. A…

According to section 100 of the Companies Act, 2013, in the case of company having a share capital, the Board of Directors at the requisition such number of members who hold, on the date of receipt of requisition, at least 1/10th of such paid-up share capital of the company as on that date carries the right of voting, call an extraordinary general meeting. In the given question, the application for requisition of EGM was placed by Mr. A and Mr. B who jointly held 5,000 equity shares (i.e. 12.5% of the share capital). Hence, these joint holders could validly requisition for calling of EGM as they hold more than 1/10th of the share capital. Thus, the Board of Directors refusal to call the EGM was not valid.