AGM Proxy - Reg

[CS Shainshad Aduvanni]

Dear Memebrs,

One shareholder is holding 1000 shares in a Listed Company in a Single Folio.

Whether such a Shareholder can appoint a proxy for attending AGM for 500 shares and with other 500 shares whether he himself can attend the same AGM.

i.e. breaking total shares in 2 for attending AGM.

Regards

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CS Shainshad Aduvanni
Company Secretary
Coimbatore

09841414439

[Amar Hussain]

Dear Aduvanni,

I do not find in the Act which says that a Member can divide the shares between a proxy and himself to attend AGM.

A member of public company can appoint more than one proxy.

I conclude that a Member can not divide the shares to attend AGM between a proxy and himself.

There is a case law: Narayanan Chettiar v. Kaleeswara Mills Ltd (1951) 21 Com Cases 351 : AIR 1952 Mad 515 : - Shareholders' mere presence at the meeting will not have the effect of revocation. 

And also look into the AOA of the Company.

Amar Hussain Shaikh

M.A., LLB., CS

Hyderabad

9440424559

 

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[CS Shainshad Aduvanni]

Dear Amar,

What is the usual practice by the Big corporates then.

Regards

[Amar Hussain]

Dear Aduvanni,

Would you be more clear in your question.  Please elaborate.

[krupa nidhi]

I don't think,there can be two proxis for a single person

[Venkat Ragavan]

Usually Corporate don't allow this kind of activity

Regards

CS Venkat

[Amar Hussain]

Section 176 in The Companies Act, 1956

176. Proxies.

(1) Any member of a company entitled to attend and vote at a meeting of the company shall be entitled to appoint another person (whether a member or not) as his proxy to attend and vote instead of himself; but a proxy so appointed shall not have any right to speak at the meeting: Provided that, unless the articles otherwise provide-

(a) this sub- section shall not apply in the case of a company not having a share capital;

(b) a member of a private company shall not be entitled to appoint more than one proxy to attend on the same occasion; and

(c) a proxy shall not be entitled to vote except on a poll.

Amar Hussain Shaikh

M.A., LLB., CS

Hyderabad

9440424559

 

On Fri, May 17, 2013 at 3:42 PM, krupa nidhi <avk...@gmail.com> wrote:

[Harini Prasad]

Dear Shainshad Aduvanni,

The concept of 'proxy' is there to enable a shareholder to make his stand(is to vote by poll), if only he is unable to attend himself. The relationship between the proxy and the shareholder is that of the agent and principal. Where is the need for an agent if the principal is there. And the provision says "instead of himself" meaning when he is there (we may construe) then he is not entitled to appoint a proxy. 

The case law referred above saying 'mere presence does not amount to revocation' could be to construct the law, say for eg: if the proxy duly appointed, then if the shareholder himself comes as per the Company's info proxy is appointed, so could be to answer such a situation of conflict (and confusion) it was so decided in the relevant case. But the shareholder to divide the no of votes between himself and the proxy, may not be possible as the 'intent' of the legislature is missing.

Others views solicited please...

Regards

Harini