Prime Industries Ltd., a public limited company with 800 members, convenes its General Meeting at 11:00 AM on 15th March 2027. The Articles of…
CA Intermediate · Corporate and Other Laws · RTP · May 2026
Prime Industries Ltd., a public limited company with 800 members, convenes its General Meeting at 11:00 AM on 15th March 2027. The Articles of Association do not prescribe a higher quorum. At the meeting, the following individuals are present: Rahul Sharma, Priya Patel, and Vikram Singh (three individual members, present in person). Arjun Mehta, authorized by Horizon Pvt. Ltd. (a corporate member) through a board resolution to represent it. Neha Kapoor, authorized by Summit Ltd. (another corporate member) through a board resolution to represent it. Karan Desai and Maya Reddy (two individual members, present only by proxy). Arjun Mehta arrives at 11:15 AM. Discuss the quorum requirements as per the provisions of the Companies Act, 2013, addressing: (i) Whether quorum is met at the start and during the meeting.
Suggested Answer and Working Notes:
As per the provisions of 103 of the Companies Act, 2013, unless the articles of the company provide for a larger number, the quorum for the meeting of a Public Limited Company shall be 5 members personally present, if number of members is not more than 1000. (1) Rahul Sharma, Priya Patel and Vikram Singh will be counted as three members. (2) If a company is a member of another company, it may authorize a person by resolution to act as its representative at a meeting of the latter company, then such a person shall be deemed to be a member present in person and counted for the purpose of quorum. Hence, Arjun Mehta and Neha Kapoor representing Horizon Pvt. Ltd. and authorized by Summit Ltd. respectively will be counted as two members. (3) Only members present in person and not by proxy are to be counted. Hence, proxies whether they are members or not will have to be excluded for the purposes of quorum. Thus, Karan Desai and Maya Reddy shall not be counted in quorum. In the light of the provision of the Act and the facts of the question, it can be concluded that the quorum for General Meeting of Prime Industries Ltd. is 5 members personally present. Total 5 members were present. Hence, the requirement of quorum is fulfilled.
Topics: Management & Administration
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