P Ltd. was holding 35% of the paid up equity capital of X Stock Exchange. The company appoints M Ltd. as its proxy who is not a member of the X Stock Exchange, to attend and vote at the meeting of the stock exchange. State the correct statement as to the appointment of M Ltd. as a proxy for P Ltd. and on the voting rights of P Ltd. in the X Stock Exchange: –
X Stock Exchange can restrict appointment of M Ltd., as proxy & voting rights of P Ltd. in Stock Exchange.
Central Govt. can restrict appointment of proxies & voting rights of P Ltd. in X Stock Exchange.
Both (a) & (b)
X Stock Exchange can restrict appointment of M Ltd. & also voting rights of P Ltd. if rules of exchange so provides. Otherwise can restrict voting rights of P Ltd. & appointment of proxies through amendment in rules.