The meetings to be organized by the company should be legal, otherwise the decisions taken and the resolutions to be passed in those meetings will not have any statutory effect. The following essential things should be kept in mind for organizing a valid meeting
(1) The meeting shall be convened by the authorized authority.
(2) Proper notice shall be given to all persons entitled to attend the meeting.
(3) There should be a caretaker number or quorum in the assembly.
(4) The Speaker of the House should be properly appointed. (5) There should be a definite agenda of the meeting.
(6) The adjourned meetings should also be organized properly. (7) Appropriate type of resolutions should be passed for decision in the assembly.
(8) Minutes or minutes of the proceedings of the House should be written.
Types of company meetings
(Kinds of Company Meetings)
(1) Meetings of the Board of Directors
(2) Meetings of the Director’s Committee
(1) Annual General Meetings
(2) Extraordinary General Meetings
(3) class meetings
(A) Shareholders’ Meetings – The meetings in which all the members of the company have the right to be present and vote are called shareholders’ meetings. These meetings are of the following types (1) Annual General Meeting Annual general meeting means an important meeting of the members of the company. It is legally mandatory for every company (except one person company) to convene and organize it annually.
Every company shall hold its first annual general meeting at the end of its first financial year.
To be conducted within 9 months. If a company does its first annual
If the general meeting is held, it shall have an annual general meeting in the year of its amalgamation.
There is no need to organize. Every annual general meeting to be held after the first annual general meeting shall be held within 6 months from the end of the financial year of the company. There should not be more than 15 months between two annual general meetings. The registrar may, if he so desires, extend the duration of the annual general meetings other than the first annual general meeting for a further period of three months.
Every Annual General Meeting is convened during office hours and on a day not being a public holiday. This meeting is held either in the registered office of the company or in any other part of the city, town, village in which the registered office of the company is located.
In this meeting, the progress of the company is reviewed during the year, annual accounts are discussed and accepted, directors and auditors are appointed and shares are recommended. All the members, auditors and other members of the company to call the annual general meeting
A clear notice should be sent to the concerned persons 21 days in advance. Proxy form and schedule should be attached to this notice.
According to the Companies Act, the presence of 5 persons in the case of a public company and 2 persons in the case of a private company is considered a quorum for this meeting.
(2) Extra-ordinary General Meeting All those meetings of the members of the company which are held during the interval of two annual general meetings are called Extraordinary General Meetings. Any company can hold its extraordinary general meeting whenever it wants, but it is not mandatory for any company to call and organize such meeting. Whenever the members of the Board of Directors feel that some business cannot be postponed till the next Annual General Meeting, the company has to convene a meeting of its members immediately. Similarly, the members of the company also demand to convene an immediate meeting of the company. Such a meeting is called an extraordinary general meeting. This meeting can be called several times in a year and at any time. Extraordinary meetings are held for immediate discussion or decision-making on specific and urgent matters so as to take advantage of the opportunity.
(3) Class meetings – When the company issues several types of shares, it may convene a meeting of each type of shareholders to consider the change in the rights of the shareholders of that class or if their class can be changed, then such meetings are held It’s called a meeting. In other words, when separate meetings of different types of shareholders are organized, they are called class meetings.
(B) Directors’ Meetings The original management of the company is in the hands of the directors. Although the shareholder has control over the operators, but the area of control of the shareholders is limited. The company’s policies, management controls and other important matters are discussed in the meetings of the directors only. The meetings of the directors are divided into the following two parts – (1) the meetings of the board of directors, (2) the meetings of the directors’ committees.
(C) Meeting of creditors – Whenever a matter has to be discussed which affects the interests of creditors, the meeting of creditors has to be convened. Often the company wants to enter into an agreement with its creditors, at that time the court can order to convene a meeting of creditors on presentation of an application by it or by any of its creditors or members. If the proposed subject is approved by 3/4th of the total creditors of the company, then the shareholders will also be accepted after getting its approval by the court. The meeting of creditors can be called at the time of winding up of the company. The purpose of convening the meeting at such times is to estimate the debts of the company and to appoint a chairman.
(D) In addition to the meetings of debenture holders-members and directors, there are also debenture holders’ meetings. Debenture holders are special type of moneylenders of the company. When companies issue debentures and appoint others, they arrange to convene a meeting of debenture holders. When the interest of debenture holders is affected due to any reason, the meeting which is convened to take their opinion is called debenture holder’s meeting.