Forums
Back
Doubt in IL MCQ
Corporate & Other Laws
In Study mat it is given that if articles doesn't provide any provision ,then the right of members to vote cannot be restricted even though calls are unpaid. But the question in MCQ says that articles is silent, then how the restriction to vote is valid? Which one is correct?
Answers (16)
Sub-section (1) of section 106 empowers the company to impose restriction on members through its articles to exercise their voting rights in respect of shares registered in his name, where calls are in arrears or other sums are presently payable or the company has exercised its right of lien. Answer is A
Anand Sankaran
Sub-section (1) of section 106 empowers the company to impose restriction on members through its articles to exercise their voting rights in respect of shares registered in his name, where calls are in arrears or other sums are presently payable or the company has exercised its right of lien. Answer is A
Yes "through articles" but here in question articles is silent right?
Thread Starter
Yamuna SYes "through articles" but here in question articles is silent right?
In the explanation section say 106(1) right
Thread Starter
Yamuna SYes "through articles" but here in question articles is silent right?
Yeah I think right option is (c) Relevant case:
CA Suraj Lakhotia Admin
Will review the MCQ and let you know.
Sir, what is the answer for this question?
Thread Starter
Yamuna SSir, what is the answer for this question?
Hi, answer would be 'Invalid as per Companies Act' We will amend the MCQ
Sahibdeep Singh
Hi, answer would be 'Invalid as per Companies Act' We will amend the MCQ
Thanks sir! But also option c correspond with the answer, why are we choosing option b
Thread Starter
Yamuna SThanks sir! But also option c correspond with the answer, why are we choosing option b
Yes, in a way both options could be selected. We have also changed option C to It is invalid as a company can never prohibit any member from exercising his voting right
Your Reply