The meeting which is held by a company is known as company meeting. According to the Companies Ordinance 1984, there are three types of company meeting. These types of meeting are same in all over the world in any country. Companies probably asked for business meetings as per see the requirements of business.
- Statuary Meeting.
- Annual General Meeting
- Extra-Ordinary General Meeting.
Types of Company Meeting
- Statuary Meeting
The first and only meeting which is held in a company between the members is known as Statuary company meeting. The statuary meeting once in a life time held in a company, which is only expressed by the company directors.
By when and who held: The statuary meeting is detained by:
- In a public company where shares are limited.
- In a public company where guarantee are limited and,
- Conversion of private company into a public company.
The statuary meeting in case of a company limited by shares shall be held between the period of 3 months and 6 months from the date of company formation and to a start of business.
How the meeting is expressed? It is provided in Section 157 (2) of the Companies Ordinance that the company directors shall send a written notice on account of statuary meeting to all the shareholders not less than 21 days earlier than the fixed date of the meeting. In any case the statuary report shall not be send by the company directors even though which is duly certified by at least three numbers of directors, including one of the members shall be chief executive of the company.
Business of the meeting: The Statuary Report may be considered as business of the meeting, because it contains a complete detail of accounts of the state of company dealings since its registration and the business sketch.
Privileges of the members: The members of the company present at the meeting shall be at liberty to discuss any mater relating to the formation of the company or arising out of the statuary report.
Default in holding Statutory Meeting: A company may be wound up if default is made in delivering the statuary report to the registrar or in holding the statuary meeting.
- Annual General Meeting
According to the Companies Ordinance 1984, every company without exception, shall hold a general meeting of its members every year. This annual general meeting is to be conveyed and held by the directors of the company. The members have no authority to convey the annual general meeting of the company.
Notice of Meeting: The notice of the Annual General Meeting shall be sent to shareholders at least 21 days before the date fixed for the meeting.
Place of meeting: In a listed company annual general meeting, shall be held in the town in which the registered office of the company is situated.
Business to be conducted: The annual general meeting is mainly held for doing the ordinary business. However, if the articles permit any special business may also be conducted at the annual general meeting by giving its notice along with the notice of annual general meeting to the members. The ordinary business of the meeting is as follow:
- Consideration and adoption of the audited annual financial reports.
- Declaration of the dividends.
- The election of directors.
- Appointments of directors.
Winding-Up: According to Companies Ordinance Section 305 (b) a company may be wound up by the court if it does not hold two consecutive annual general meetings.
- Extra-Ordinary General Meeting
Meaning: Extra-ordinary General Meeting refers to those kinds of meeting which is different from statuary meeting as well as annual general meeting.
How the meeting is called: The extra-ordinary general meeting may be called in the following ways:-
- The directors may at any time call an extra-ordinary general meeting to consider any matter which they think it necessary.
- The directors may call the meeting on the requisition of the shareholders representing not less than one tenth of the voting powers.
Purpose: The extra-ordinary general meeting is called only:
- When some special business is to be conducted.
- The business as per articles cannot be transacted at the annual general meeting.
- The business is of such an important nature that it cannot be deferred till the annual general meeting.