Saturday, July 17, 2010

Companies Act_Practical Problems_93

J held 100 partly paid up shares of LKM Limited. The company asked him to pay the final call money on the shares. Due to some unavoidable circumstances he was unable to pay the amount of call money to the company. At a general meeting of the shareholders, the chairman disallowed him to caste his vote on the ground that the articles do not permit a shareholder to vote if he has not paid the calls on the shares held by the him. J contested the decision of the chairman. Referring to the provisions of the Companies Act, 1956 decide whether the contention of J is valid.

4 comments:

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Gaurav Gupta said...

Restriction imposed on A is nt gud.
As BOD has nt forfeited his shares, nd still his name is in d registers of members. Hence, he has right 2 vote. I think so.

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