Types of Business Meetings

Business Meeting

Business Meeting is the most important part of the business. If there is no meeting in a business to sort out the basic issues or to boost the range of the business, then it may cause a massive loss or a great miscommunication among the top authorities. All those people who participate in business meetings are known as the participants of business meetings. There are many purposes for scheduling a business meeting. Types of business meetings include shareholders, directors, and special meetings according to the experts in the field of business.

The primary purpose of any meeting is to address the issues, which affect the productivity and operations of a company. Such issues can cause a decrease in the net profit or can be a reason to lose the reputation of the company.

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To achieve the primary goal of the meeting, the leaders should take hard actions to make a meeting effective. Generally, the following are the most common purposes for calling a meeting.

1. For sorting out any conflict
2. Or for negotiating an agreement or a contract, or anything relative
3. Moreover for dealing with the current problem in a business
4. And for getting a report for the purpose of review and assessment
5. To check the current position of the business

In a Business, most of the meetings are arranged for discussing any particular issue with the Board of Directors, an accountability partner, or business partners. On the other hand, business meetings can also be called to check the cash flow statement, income statement, and balance sheet of the business.

Types of Business Meeting

According to the experts in the field of business, there are three types of business meetings, i.e. shareholders meetings, directors meetings, and special meetings.

Shareholders Meeting

The meeting, which is held to meet the shareholders of the company, is called a shareholders meeting. Further, the following are a few divisions of a shareholder meeting.

• Statutory Meeting

As per company laws, a company has to arrange a meeting after receiving the letter of commencement. The meeting has to be arranged one month after the first six months of the company. The statutory meeting is held only once in the whole span and is the first meeting of any company. It is necessary to give an advertisement at least 21 days before calling a statutory meeting. The decision taken in a statutory meeting is known as a statutory decision.

• Annual General Meeting

It is necessary for any company to call the first general meeting within 18 months after getting registered as a company. Following the sequence, general meetings are called every year after the first one. There should not be a difference of more than 15 months between the two general meetings. Those decisions that are the result of an annual general meeting are known as general decisions.

• Extra-Ordinary General Meeting

This type of meeting can be scheduled anytime on the demand of the Board of Directors or shareholders. Legally, one-tenth of shareholders can arrange this meeting on demand. There is not any scheduled time for this type of meeting according to the company law. The decision, which is taken in an extraordinary general meeting, is known as a special decision.

Directors Meeting

There is a range of meetings arranged in a business or a company. The meeting that is held among the directors of the company is known as a directors meeting. Usually, calling a directors’ meeting may lead to a gigantic change in a company. There are two kinds of Directors Meetings i.e. Board Meeting and Committee Meeting.

• Board Meeting

As per the article of association, a Board Meeting is such a meeting, which is held between the directors of the company. The company is obligated to arrange a board meeting anyhow once a month or at least four times in the span of a year according to the company law. The Quorum of a board meeting should be filled with 3/1 directors or there should be the presence of at least 2 directors. Every director has the right to cast one vote. In some cases, when the directors’ vote is divided equally, then the president has to cast a vote and take a certain decision.

• Committee Meeting

As stated in the article of association, the Board of Directors forms a special committee with a few directors to achieve or fulfill any special task. The meeting, which is held between the members of the committee for any purpose is called a committee meeting.

Special Meeting

When any meeting is arranged about any special issue or challenge it is called a special meeting. This meeting is called by the company through special invites. A special meeting is of two kinds i.e. Class Meeting and Creditors Meeting.

• Class Meeting

There are a few various types of shares issued by a company. When a meeting is held among one kind of shareholders for any purpose, it is called a class meeting. Certainly, this meeting has something that belongs to only a specific class.

• Creditors Meeting

There are many reasons behind arranging a creditor’s meeting. Usually, a creditors meeting is arranged by the directors of the company or lower staff appointed by the directors. In addition, this meeting is also scheduled on the order of the court. Any person of higher authority calls for a creditors meeting with the purpose to reconstruct, dissolve, or any other action to protect the rights of the creditor.

The presence of three-fourths of the credit holders of the company can make a decision. After that, the court will provide the instructions on the basis of the decision taken by the creditors who were present in the meeting. The creditors have to accept the decision and abide by the instructions of the court anyhow.