Company meetings & kinds of meetings
Get together of individuals or persons with some plan is known as meeting.
When two or more persons gathered as per given notice to discuss some business matters is known as business meetings.
When the members of a company gather at a certain time and place to discuss business affairs it is called company meeting.
kinds of meetings:
There are following types or kings of meeting in a company
1. Shareholders Meeting\Statutory (legal) Meeting:
Statutory meeting is the first meeting of the members of a public company. It is held once in the life of a public company. Statutory means legal so this meeting is totally based on law. Law enforced the company to call this meeting.
This meeting must be held after 3 months, but before 6 months of obtaining the certificate of commencement of business.
Notice of Meeting:
The directors will send a notice of the meeting to all the members of the company at least 21 days before the meeting. And also send statutory report to the shareholders.
Objectives of the Meeting:
Following are the main objectives of the meeting.
i. To win Confidence:
This meeting is called to win the confidence of the shareholders and try to increase their attention towards the company and try to create their interest in the development of the company.
ii. To Provide Latest Information:
As it is the first meeting of the company and that is why its prime objective is to brief about the position of the company in the market and provide the information about the expected growth of the company and the industry.
iii. To Discuss Statutory Report:
Another objective of this meeting is to discuss statutory report of the company. Statutory report contains following type of information;
a. Details of the shares allotted
b. Total number of shares issued
c. Total receipts and total payments
d. Cash received against shares allotted
e. Names of the directors, CEO, secretary, auditors and legal advisors etc.
iv. To Discuss Future Plans:
This meeting is held to brief about the future plans of the company for example; about to increase the share capital, about to make new units of production, about to purchase some kind of securities, about to issue debentures against the borrowing etc.
v. To Inform About the Property:
Another purpose of this meeting is to inform the shareholders about the assets of the company and their value in terms of money in the market.
vi. To Inform Where the Money Used:
It is also included in this meeting to inform the shareholders where the collected money from shares is used and where the future earnings will be used etc.
In default in filing statutory report and in holding the statutory meeting, every responsible officer and the company shall be liable to a fine.
2. Annual General Meeting:
Every public company will hold Annual General Meeting of its members every year. This meeting is to be call and held by the directors of the company.
The first annual general meeting must be held within 18 months from the date of its incorporation. The next meeting must be held once in every calendar year within 4 months after closing of its financial year. The interval between the two meetings must not exceed than 15 months.
Notice of the Meeting:
The directors will send a notice of the meeting to all the members of the company at least 21 days before the meeting. It should also be published in newspaper.
Objectives of the Meeting:
Following are the main objectives of this meeting
i. To check Annual Accounts:
The first and the most important objective of this meeting is to check annual accounts of the company as well as check the growth of the company among the relevant industry.
ii. Declaration of Dividend:
The shareholders and directors declare the dividend of the year with the mutual co-operation. They make decisions for the betterment of the company and for the betterment of the shareholders etc.
iii. Election of Directors:
Elections of the directors also held in this meeting, elected participant will lead the company up to the next annual general meetings.
iv. Appointment of Auditor:
In this meeting the directors and shareholder with the mutual co-operation announced the name of the auditor and fixed the remuneration.
If the company fails to hold this meeting the company and every officer of the company shall be liable to fine.
3. Extra Ordinary General Meeting:
All general meetings other than annual general meeting and statutory meeting are known as Extra-Ordinary General Meetings. This meeting is held on the special occasions or you can say in the emergency situations when directors think that it necessary. For example; at the plan of merger etc
This meeting is held on the special occasion and in the emergency situation.
Notice of the Meeting:
The directors will send a notice of the meeting to all the members of the company at least 21 days before the meeting.
Following are the main objectives of the Extra Ordinary General Meeting.
i. Special Business:
In case of special business this meeting is held for example; a case of 10 billion rupees of export is at the door. In this case it can be called.
ii. In Some Innovative Cases:
In some innovative cases this meeting can be called for example; an idea of launching a new product or launching a new setup etc