Q. Discuss the different kinds of meeting held by company. What is the importance of Annual General Meeting? [2016 - 20 marks]
Q. Short note on Annual General Meeting [2017, 2018 - 4 marks]
Kinds of meeting held by companies
Various kinds of meetings are conducted by the companies. These can be categorized as below:
1. Annual General Meeting
2. Extraordinary General Meeting
3. Statutory Meeting
4. Board Meeting
5. Meeting of the Debenture Holders
1. Annual General Meeting
The Companies Act 2013 by its section 96 makes it mandatory to hold Annual General Meeting (AGM) of the shareholders every year. The company must give a clear 21 days’ notice to its members for calling the AGM. The notice should mention the place, the date and day of the meeting, and the hour at which the meeting is scheduled. The notice should also mention the business to be conducted at the AGM.
In case of Private Ltd company there should be at least 2 members present in the AGM. In case of Public limited company quorum should be as follows:
(i) at least 5 members present if the number of members is within 1000
(ii) at least 15 members present if the number of members is between 1000 to 5000
(iii) at least 30 members present if the number of members is more than 5000
2. Extraordinary General Meeting (EOGM)
All general meetings other than the AGM and Statutory meetings are called Extraordinary General Meetings. These meetings are convened to deal with all the extraordinary matters, which fall outside the usual business of the Annual General Meetings. Every business transacted at these meetings is called Special Business.
3. Statutory Meeting
The Companies Act, 2013 provides that every public company should hold a meeting of the shareholders within 6 months but not earlier than one month from the date of commencement of business of the company.
Usually, the statutory meeting is the first general meeting of the company. It is conducted only once in the lifetime of the company. A private company or a public company having no share capital need not conduct a statutory meeting.
4. Board Meeting
Board meetings are the meetings of the directors of the company. These are the most frequently held meetings in any company.
5. Meeting of the Debenture Holders
Meeting of the Debenture Holders means a meeting of the Debenture Holders, duly called, convened and held in accordance with the provisions set out in Schedule 1 (Provisions for the Meetings of the Debenture Holders) of Part A (Standard/Statutory Information in Connection with the Issue) of this Deed.