CAF-4 · Chapter 22
Meetings and resolutions MCQs with Answers
11 multiple-choice questions on Meetings and resolutions for CAF-4 Business Law Dynamics. Try each one before revealing the answer and explanation.
Practise this chapter interactivelyQuestion 1
According to the Companies Act, 2017, what is the minimum voting power required for members present at a general meeting to demand a poll on a resolution?
- A) 5% of the company's voting power
- B) 10% of the company's voting power
- C) 15% of the company's voting power
- D) 25% of the company's voting power
Show answer & explanation
Answer: C) 15% of the company's voting power
A poll on a resolution can be demanded by one or more members present at the general meeting who hold at least 15% of the company's voting power.
Question 2
What is the minimum voting power required for members to requisition the board of directors to call an Extra-ordinary General Meeting (EGM)?
- A) 5% voting power
- B) 10% voting power
- C) 15% voting power
- D) 20% voting power
Show answer & explanation
Answer: B) 10% voting power
Members holding at least 10% of the voting power have the right to requisition the board to call an Extra-ordinary General Meeting (EGM).
Question 3
When a listed company issues a notice for a general meeting, what are the specific publication requirements it must fulfill?
- A) It must send the notice to the SECP and publish it in both English and Urdu newspapers.
- B) It only needs to publish it on the company's official website.
- C) It must publish it in at least three international business magazines.
- D) It must mail physical copies via registered post without any newspaper publication.
Show answer & explanation
Answer: A) It must send the notice to the SECP and publish it in both English and Urdu newspapers.
A listed company is legally required to send the meeting notice to the Commission (SECP) and publish it in both English and Urdu newspapers.
Question 4
In cases where shares of a company are held jointly by multiple individuals, how may the company validly serve a notice of a general meeting?
- A) The notice must be sent to all joint holders individually.
- B) The notice may be given by the company to the joint holder named first in the register.
- C) The notice must be published in a newspaper specifically addressing the joint holders.
- D) Joint holders are not entitled to receive individual meeting notices.
Show answer & explanation
Answer: B) The notice may be given by the company to the joint holder named first in the register.
To fulfill the requirement of sending a notice, the company may simply serve the notice to the joint holder who is named first in the register of members.
Question 5
A public company held its incorporation on 1 February 2024. By what date must the company hold its very first Annual General Meeting (AGM)?
- A) By 1 February 2025 (within 12 months)
- B) By 1 June 2025 (within 16 months)
- C) By 1 August 2025 (within 18 months)
- D) Within 120 days of its first financial year close.
Show answer & explanation
Answer: B) By 1 June 2025 (within 16 months)
The first AGM of a company must be held within 16 months from the date of its incorporation. Subsequent AGMs are held once in every calendar year within 120 days following the close of the financial year.
Question 6
During a general meeting, a group of shareholders wants to demand a poll on a controversial resolution. What is the minimum requirement for their demand to be valid?
- A) They must hold at least 5% of the voting power.
- B) They must hold not less than 10% of the voting power.
- C) They must hold at least 25% of the voting power.
- D) Any single member can demand a poll regardless of voting power.
Show answer & explanation
Answer: B) They must hold not less than 10% of the voting power.
Under the Companies Act, the chairman is bound to accept a demand for a poll if it is made by members present in person or by proxy holding not less than 10% of the voting power.
Question 7
An Extraordinary General Meeting (EGM) of an unlisted public company has been called. What constitutes a valid quorum for this meeting, assuming the articles do not provide for a larger number?
- A) Not less than 10 members present personally, holding 25% of voting power.
- B) Not less than 2 members present personally, representing not less than 25% of the total voting power.
- C) 3 members holding 10% voting power.
- D) 5 members holding 51% voting power.
Show answer & explanation
Answer: B) Not less than 2 members present personally, representing not less than 25% of the total voting power.
For a public unlisted company, the statutory quorum is not less than 2 members present personally (or through video-link), who represent not less than 25% of the total voting power.
Question 8
If a meeting is called by the Commission (SECP) due to a default in holding the AGM, what special rule regarding the quorum may the Commission direct?
- A) The quorum requirement is completely waived.
- B) The meeting must have 100% attendance to be valid.
- C) One member of the company present in person or by proxy shall be deemed to constitute a meeting.
- D) Only directors can form the quorum.
Show answer & explanation
Answer: C) One member of the company present in person or by proxy shall be deemed to constitute a meeting.
When the Commission directs the calling of a meeting, it may give consequential directions, including a direction that one member present in person or by proxy shall be deemed to constitute a meeting.
Question 9
Shareholder Ali requested a certified copy of the minutes of the 10th AGM held on 5 May. He submitted his request on 10 May. Under the law, when is Ali entitled to receive this copy?
- A) Immediately on the day of request.
- B) He must wait until 7 days have passed from the date of the meeting, after which the company has 7 days to furnish it.
- C) Within 30 days of the meeting.
- D) Members are not entitled to receive AGM minutes.
Show answer & explanation
Answer: B) He must wait until 7 days have passed from the date of the meeting, after which the company has 7 days to furnish it.
A member is entitled to a copy of the minutes at any time *after 7 days* from the meeting. Once a valid request is made after this period, the company must furnish the copy within 7 days of the request.
Question 10
If members holding 10% voting power requisition an EGM, but the directors fail to call the meeting within 21 days, what action can the requisitionists take?
- A) They can sue the directors for fraud.
- B) They can call the meeting themselves, provided it is held within 90 days from the date of the deposit of the requisition.
- C) They must appeal to the SECP to call the meeting.
- D) The requisition automatically expires.
Show answer & explanation
Answer: B) They can call the meeting themselves, provided it is held within 90 days from the date of the deposit of the requisition.
If directors default, the requisitionists themselves can call the meeting, but it must be held and conducted within 90 days from the date the requisition was originally deposited.
Question 11
A special resolution requires a notice period of at least 21 days. Can a special resolution be passed with a shorter notice period?
- A) No, the 21-day period is absolute.
- B) Yes, if all the members entitled to attend and vote agree to the shorter notice.
- C) Yes, if the SECP grants permission.
- D) Yes, if the board of directors unanimously agree.
Show answer & explanation
Answer: B) Yes, if all the members entitled to attend and vote agree to the shorter notice.
A special resolution generally requires a 21-day notice, but it can be passed with shorter notice if all the members entitled to attend and vote so agree.