Thursday, 21 March 2019

Company Registration in Tirupur

Company Registration in Tirupur

Company Registration in Tirupur


Companies Act, 1956: Section 174

Section 174 of the Companies Act, 1956 (the 1956 Act) provided for quorum for general meetings. It stated that two members personally present formed quorum in case of a private company and the minimum number of members required to be present in person for forming quorum was five in case of public companies. The said section also provided for adjournment of meeting if quorum was not present within half an hour of time appointed for holding the meeting. If at the adjourned meeting quorum was not present then, unless it was a meeting called by the requisitionists, the members present formed quorum. If however the requisitionists had called a meeting and if at the meeting necessary quorum was not present then the meeting would get adjourned as in case of other meetings to the same day, time and place or such other place as the Board may determine and if at the adjourned meeting quorum was not present within half an hour of the scheduled time of the meeting then the meeting stood dissolved.
This section corresponds to s. 174 of the 1956 Act. Provision of adjourned meeting continues as before under the 1956 Act with few changes but the quorum in case of public companies is now linked to the number of members in the company.
As per s. 174 of the 1956 Act, the quorum for a public company was uniformly 5 members present in person. It was irrespective of the number of members in the company. However, now as pers. 103 of the 2013 Act, the quorum for a public shall be determined on the basis of number of its members. If the total number of members of a public company is not more than 1000, then the quorum will be 5 members present in person. If the number of members is between 1000 and 5000, then the quorum will be 15 members present in person and if the total number of members is more than 5000, then the quorum will be 30 members present in person.
In case of adjourned meeting or change of time, place or day, the company has to give at least 3 days notice to members either individually or by publishing an advertisement in the newspaper as provided in the proviso to sub-section. (2). In the 1956 Act, there was no such requirement. A meeting called by requisitionists shall stand cancelled where quorum is not present as required at the scheduled meeting within half an hour and at the  adjourned meeting."

Quorum of members entitled to vote [Section 103(1) of the Companies Act, 2013]

The quorum of five or fifteen or thirty members (as the case may be) personally present in the case of a public company and two members in the case of a private company means a quorum of members entitled to vote in respect of the items of business on the agenda of the meeting. Articles may provide for a larger number as quorum. If votes are cast electronically and requisite quorum is not present at the general meeting the provisions of s. 103(2) and (3) of the 2013 Act will apply and if at the adjourned meeting (not being a meeting called by requisitionists) the members present shall form a quorum and the resolution shall be deemed to have been passed on the date adjourned meeting.

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