Section 105: Proxies
This section is for regulating the appointment and use of proxies at company meetings.
Penalty
(3) If default is made in complying with sub-section (2), every officer of the company who is in default shall be 1[liable to a penalty of five thousands rupees].
(5) If for the purpose of any meeting of a company, invitations to appoint as proxy a person or one of a number of persons specified in the invitations are issued at the company’s expense to any member entitled to have a notice of the meeting sent to him and to vote thereat by proxy, every officer of the company 2[who issues the invitation as aforesaid or authorises or permits their issue, shall be liable to a penalty of fifty thousand rupees]:
The section, clause by clause
What the section says
In plain terms
(1)Any member of a company entitled to attend and vote at a meeting of the company shall be entitled to appoint another person as a proxy to attend and vote at the meeting on his behalf:
A company member can appoint another person as a proxy to attend and vote at a meeting on their behalf, but the proxy cannot speak at the meeting and can only vote on a poll, and a person can act as proxy for up to 50 members.
provisoProvided that a proxy shall not have the right to speak at such meeting and shall not been titled to vote except on a poll:
provisoProvided further that, unless the articles of a company otherwise provide, this sub-section shall not apply in the case of a company not having a share capital:
provisoProvided also that the Central Government may prescribe a class or classes of companies whose members shall not be entitled to appoint another person as a proxy:
provisoProvided also that a person appointed as proxy shall act on behalf of such member or number of members not exceeding fifty and such number of shares as may be prescribed.
(2)In every notice calling a meeting of a company which has a share capital, or the articles of which provide for voting by proxy at the meeting, there shall appear with reasonable prominence a statement that a member entitled to attend and vote is entitled to appoint a proxy, or, where that is allowed, one or more proxies, to attend and vote instead of himself, and that a proxy need not be a member.
The notice calling a company meeting must include a statement that members can appoint a proxy to attend and vote, and that the proxy does not have to be a member.
(3)If default is made in complying with sub-section (2), every officer of the company who is in default shall be 1[liable to a penalty of five thousands rupees].
If a company fails to include this statement in the notice, every officer in default will be liable to a penalty of five thousand rupees.
(4)Any provision contained in the articles of a company which specifies or requires a longer period than forty-eight hours before a meeting of the company, for depositing with the company or any other person any instrument appointing a proxy or any other document necessary to show the validity or otherwise relating to the appointment of a proxy in order that the appointment may be effective at such meeting, shall have effect as if a period of forty-eight hours had been specified in or required by such provision for such deposit.
Any provision in a company's articles requiring a longer period than 48 hours for depositing proxy instruments will be treated as if 48 hours had been specified.
(5)If for the purpose of any meeting of a company, invitations to appoint as proxy a person or one of a number of persons specified in the invitations are issued at the company’s expense to any member entitled to have a notice of the meeting sent to him and to vote thereat by proxy, every officer of the company 2[who issues the invitation as aforesaid or authorises or permits their issue, shall be liable to a penalty of fifty thousand rupees]:
If a company issues invitations to appoint a specific proxy at its expense, and an officer issues or authorises the invitation, they will be liable to a penalty of fifty thousand rupees.
provisoProvided that an officer shall not be 3[liable] under this sub-section by reason only of the issue to a member at his request in writing of a form of appointment naming the proxy, or of a list of persons willing to act as proxies, if the form or list is available on request in writing to every member entitled to vote at the meeting by proxy.
(6)The instrument appointing a proxy shall—
A proxy instrument must be in writing and signed by the appointer or their attorney, or under the company's seal if the appointer is a body corporate.
(6)(a)be in writing; and
(6)(b)be signed by the appointer or his attorney duly authorised in writing or, if the appointer is a body corporate, be under its seal or be signed by an officer or an attorney duly authorised by it.
(7)An instrument appointing a proxy, if in the form as may be prescribed, shall not be questioned on the ground that it fails to comply with any special requirements specified for such instrument by the articles of a company.
A proxy instrument in the prescribed form cannot be questioned for failing to comply with special requirements in the company's articles.
(8)Every member entitled to vote at a meeting of the company, or on any resolution to be moved thereat, shall be entitled during the period beginning twenty-four hours before the time fixed for the commencement of the meeting and ending with the conclusion of the meeting, to inspect the proxies lodged, at any time during the business hours of the company, provided not less than three days’ notice in writing of the intention so to inspect is given to the company.
Members can inspect proxies lodged with the company during business hours, from 24 hours before the meeting to its conclusion, if they give at least 3 days' written notice.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Subs. by Act 22 of 2019, s. 17, for “punishable with fine which may extend to five thousand rupees” (w.e.f. 2-11-2018).
- 2. Subs. by Act 29 of 2020, s. 21, for certain words (w.e.f. 21-12-2020).
- 3. Subs. by s. 21, ibid., for “punishable” (w.e.f. 21-12-2020).
Referred to by
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.