Company law

Aashish (Querist) 26 March 2012 This query is : Resolved
As per section 176 of the companies act 1956, a proxy is not allowed to speak in the general meeting...

My query is... since the proxy is not allowed to speak is it not a voliation of Article 19 of the constitution (freedom to Speech and expression)

Is the constitution being the supreme law will prevail or companies act 1956...?????

Thanks in advance...

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Sailesh Kumar Shah (Expert) 26 March 2012
Dear Aashish,

I am not agree with your version. if this restriction is apply on Shareholder of the company then it would be violation of Article 19 of the constitution.

Guest (Expert) 26 March 2012
Section 176, as a matter of Management and Administration of the company part of the Companies Act, applies with respect to meetings of any class of members or of debenture-holders that allows any member to appoint proxy just for voting purpose on his behalf. But that does not allow a third person to interfere in the management of the company by exercising all the rights of the individual member.

Thus, in my views article 19 of the Constitution is not violated at all, if the third person is not allowed to speak on behalf of the member. The said section does not therefore stand to curb any individual right of the member in connection with the adminstration/ management of the company. The concerned member is free to participate by attending the meeting if he has something to say for himself.

Fundamental Rights as per Article 19 are of individual citizens of India, not of any proxie on his behalf. Article 19 of the Constitution does not in any sense allows delegation or passing of fundamental rights of the individual citizen to anyone else to exercise on his behalf.

Raj Kumar Makkad (Expert) 26 March 2012
I have nothing to add in the advice of Dhingra ji.

Shonee Kapoor (Expert) 26 March 2012
I concur with Dhingra Ji.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

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