Meeting
The meeting which is held by a company is known as a company meeting. According to the Companies Ordinance 1984, there are three company meetings types. These types of meetings are the same all over the world in any country. Companies probably asked for business meetings as per the requirements of business.
- Statutory Meeting.
- Annual General Meeting
- Extraordinary General Meeting.
Types of Company Meeting
Statutory Meeting
The first and only meeting which is held in a company between the members is known as a Statuary company meeting. The statutory meeting once in a lifetime held in a company, which is only expressed by the company directors.
By When and Who Held
The statutory meeting is detained by:
- In a public company where shares are limited.
- In a public company where guarantee are limited and,
- Conversion of a private company into a public company.
The statutory meeting in case of a company limited by shares shall be held. Within time period of 3 and 6 months from the date of company formation and to a start of business.
How is the Meeting expressed?
It is provided in Section 157 (2) of the Companies Ordinance that the company directors shall send a written notice on account of statutory meeting. To all the shareholders not less than 21 days earlier than the fixed date of the meeting. In any case the statutory report shall not be sent by the company directors. Even though it 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 Statutory Report may be considered as business of the meeting. Since, 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 matter relating to the formation of the company or arising out of the statutory report.
Default in Holding Statutory Meeting
A company may be wound up if default is made in delivering the statutory report to the registrar or in holding the statutory 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.
Extraordinary General Meeting
Extra-ordinary General Meeting refers to those kinds of meeting which is different from statutory meeting as well as annual general meeting.
How the Meeting is Called
The extraordinary general meeting may be called in the following ways:-
- The directors may at any time call an extraordinary 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 extraordinary 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.
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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