Meaning and definition
The term meeting is not codified under the companies act, the word meeting is defined as “assembly of people for a particular purpose, for formal discussion”. A company meeting can be defined as a concurrence or coming together of members in order to transact either ordinary or special business of company.
Annual meetings must be held by companies to discuss the company's business affairs; however, other meetings can be organised by a company depending on its needs. Meetings give members of a company a fair opportunity to express their views so that decisions can be made based on them. Every meeting held by a company must be properly recorded, and every meeting must be registered with the registrar of companies within 30 days.
Annual general meeting S.96
An annual general meeting refers to a meeting which a company holds annually. All the types companies whether private, pubic company, it is important for every company to hold annual general meeting once every year. There time period between two meetings should be within 15 months, there is an exception for when a accompany is incorporated. After incorporation the company has to organize annual meeting under 18 months.
As per S.166 of companies act the time limit prescribed for a meeting after a company is incorporated Is 18 months, after that there shouldn’t be a gap for more than 15 months between two annual general meeting. The registrar has a power to extend the period by additional 3 months. There must bee a notice issued for the details such as date, place, time of the meetings and it shouldn’t be on public holidays and should be in business hours. The venue should be the company’s premise or any place located within the city.
As per S.167 of companies act if the company doesn’t organize an annual general meeting and subsequently a company member files an application for the issue, the regional director of the company law board can call for meeting and that can be counted as an annual general meeting. If the guidelines aren’t followed a fine can be imposed upon every responsible officer of the company, and the time frame for notice to call for the meeting is 21 days, but with the agreement of members who are entitled to vote the notice can be of shorter duration.
The annual general meetings are held to discuss the ordinary business, like annual accounts, important reports, audit, divined declaration and so on. Apart from this ordinary business special business can also be discussed in the meeting.
Extraordinary general meeting S.100
The extraordinary general meeting is called to discuss special business, apart from ordinary business which is discussed at annual general meeting. extraordinary general meeting is usually called for urgent matter and which cant be discussed in annual meeting.extraordinary general meeting can be called upon by directors, shareholders holding 1/10 of paid-up shares.
S.186 states of companies act state that the company law board has power to call an extraordinary general meeting but no annual general meeting.Modifications to the Memorandum of Association, changes to the Articles of Association, as well as share capital schemes are typically discussed at an extraordinary general meeting. Any issue that requires immediate attention necessitates extraordinary general meetings.
S.98 of the companies act states that tribunal can also call for meeting by its own and can conduct extraordinary general meeting.
If the board does not hold a meeting within 45 days of the request, the members who made the request can hold the meeting within three months of the request date. The Requestions must notify the company and the members who will be attending the meeting 21 days before the date of the meeting. Section 102 of the Companies Act does not require an explanatory statement when a meeting is organised by the Requestions.
Class meetings are a type of meeting which are held by particular class of shareholder. These meetings are usually held when it affects the particular class of shareholders. Hence it becomes necessary to call separate class meetings of particular shareholders to seek their approval.
The directors collectively make up the board of directors of a company, which exercises its powers in meetings of board periodically. As per the S.173 of companies act, board of directors of companies should hold board meetings at least every 3 months, or 4 meetings in a year. The strength of the board meeting should be at least 1/3 of the board members or 2 directors whichever is higher.
Meetings are a very important aspect of a company and play a very vital role in the growth of the company. The meetings hence hold a important place in a company’s business cycle it helps to communicate the goals of the company to its shareholders.