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A closely held public company has 7 members. The Company proposes to get a special resolution passed for approving related party transaction as per section 188. 6 out of the 7 members are interested. Given that interested members are not entitled to vote on the resolution under section 188, can the remaining member alone approve the resolution. Will that dis-interested member alone be treated as valid quorum or should there be at least 5 dis-interested members for the meeting to go on and the resolution to be passed.

Section 188- Related party transactions.

Posted By: Arun kumar 10 year(s) ago

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Expert Ankit Singhi

in general meeting quorum is taken for the meeting and not for the individual items. so for resolution relating to section 188 the remaining member even 2 can vote in the resolution

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