How many types of meetings are regulated under Companies Act 2013?
Meetings is association or gathering of several number of person for discussing on corporate matters. Decision making requires majority of votes. The directors and also members discuss on various matters. According to companies Act, meetings are important provision. Act has many provisions for meeting. Meeting should at least have two persons. One person can not constitute meeting.
“If it’s a meeting that requires brainstorming and creativity, then the facilitator needs to breed that environment,” McDonald says.
The Economist, Article “The cure for bad meetings” retrieved on 7th December 2017 , Original Article by Julia White
Requisites of Valid Meeting
Following are the requisites for valid meeting:
- properly conducted
- Conducted by Authorized persons
- Proper and also adequate notice
- legally constituted.
- must have chairperson.
- follow rules of quorum
- validly transacted business.
Types of Meeting
1. Member’s Meeting :
This meeting is only for the members of the company. Members and also directors discuss on the matters related to company.
Following are the types of member’s meeting:
- Statutory Meeting.
- Annual General Meeting.
- Extra Ordinary General Meeting.
A. Statutory Meeting :
Statutory meeting is the first meeting which company conducts afters its commencement. Conduction of statutory meeting is compulsory. Public limited company is required to hold such meeting within a period not less than one month and not more than six months from the date of commencement.The directors of company also need to make statutory report. Every members also must be given a copy of report at least 21 days before the date of the meeting and a copy is also to be sent to the Registrar for registration.
Section 165(3) provides that the Statutory Report must contain the following particulars:
(i) The total number of fully paid-up and partly paid-up shares allotted;
(ii) The total amount of cash received ;
(iii) the receipts, classifying them and also the expenses incurred for commission, also brokerage etc.
(iv) The names, addresses and also occupations of directors, auditors, managers and secretaries and also changes of the names, address etc.
(v) Particulars of contracts with proposed modifications presented at meeting for approval;
(vi) The arrears of calls;
(vii) Commissions and brokerages paid to directors and managers.
Every director or any other officer of the company who is in default shall be punishable with a fine which may extend to Rs. 500.
Under Section 96 of the companies act, every company shall hold a general meeting as annual general meeting every year. Except one person company. There should not be a gap of more than fifteen months between two AGM.
Notice of AGM can be either in writing or also in electronic form. The member should get the notice at least fore 21 clear days. . The notice should consist of place, day, date and the proper hour of the meeting. It should also contain agenda of meeting. Every member of the company, legal representative of deceased and assignee of insolvent member, auditor and every director of the company should get notice. Section 101 of the Companies act 2013, deals with the provision of Notice for the AGM.
C. Extra ordinary meeting (EGM)
Every meeting which is not a AGM or statutory meeting meeting is EGM. An EGM is held for some special business which can not be transacted at AGM. It is also held to transact some urgent business. This meeting may be called by the Directors or by the member’s according to Sec.169 of the Companies Act, 1956.
Meeting of Creditors:
Meeting is when directors of company has any scheme for creditors. The Court may order a meeting of the creditors on the application of the company or of liquidator in case of a company being wound-up.
Meeting of Debenture Holders:
Such meetings is held in the interest of debenture holder. The rules for appointment of Chairman, notice of the meeting, quorum etc. are there in the Trust Deed.
Meeting of Creditors and Contributories:
The main purpose is obtain consent of creditors and contributories to the scheme of rearrangement or compromise. It is to save the company from financial difficulties. Sometimes, the Court may also order to conduct meeting. The term “contributory” covers every person who is liable to contribute to the assets of the company when the company is being wound-up.
4. Meeting of the Board of Directors:
The Board of Directors controls the management of the company. Therefore, the Directors are to meet frequently to decide both policy and also other related matters. It is conducted four times in a year.