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Secretarial Practice · Class 11 Commerce

Ch 7Company Meetings – I — Class 11 Secretarial Practice, concept-first.

A joint stock company is an artificial legal person — it cannot think, decide or act on its own. Every decision a company takes, from approving its annual accounts to changing its name, is actually taken by the human beings behind it: its shareholders and its directors, acting collectively in a meeting.

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Overview

A joint stock company is an artificial legal person — it cannot think, decide or act on its own. Every decision a company takes, from approving its annual accounts to changing its name, is actually ta…

1

Meaning and Definition of a Meeting

In ordinary usage, a "meeting" simply means people coming together. In company law, however, the word carries a precise technical meaning, because only a properly constituted meeting can validly trans…

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Essentials (Requisites) of a Valid Meeting

Not every gathering that calls itself a "meeting" produces legally valid decisions. For a company meeting to be valid — that is, for its resolutions to bind the company and its members — it must satis…

3

Classification of Company Meetings

Company meetings are not all of one kind — the Companies Act, 2013 recognises several distinct categories, each with its own purpose, participants and legal requirements.

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Annual General Meeting (AGM) — Section 96

The Annual General Meeting is the single most important meeting of members in a company's calendar — it is the one occasion, held without fail every year, at which shareholders formally review the com…

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Extraordinary General Meeting (EGM) — Section 100

Not every matter requiring a members' decision can wait for the next Annual General Meeting, which may be many months away.

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Notice of Meeting — Section 101

A meeting cannot bind members who were never properly told it was going to be held. Notice is therefore the first procedural pillar of a valid meeting.

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Quorum — Section 103

Even with proper notice, a meeting cannot be allowed to transact business if only a handful of members happen to turn up — the decisions taken would not genuinely represent the body of shareholders.

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Proxy — Section 105

A member entitled to attend and vote at a company meeting may not always be able to attend in person — they may be travelling, unwell, or simply unable to be present on the date fixed.

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Voting Methods and Resolutions

A meeting exists, ultimately, to arrive at a decision. That decision is expressed in the form of a resolution, and the resolution is arrived at through one of several recognised voting methods.

More questions

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  1. Q3What is meant by a 'meeting' in company law? State any four essentials of a valid meeting.Free
  2. Q4State the time limits within which a company must hold its first AGM and its subsequent AGMs under Section 96 of the Companies Act, 2013.Preview
  3. Q6State the circumstances under which the Board of Directors is bound to call an Extraordinary General Meeting on the requisition of members,…Preview
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  1. Q1A public company has 3,200 members as on the date of its general meeting. What is the quorum required under Section 103 of the Companies Act…Free
  2. Q2What is the maximum permissible gap between two consecutive Annual General Meetings of a company under Section 96 of the Companies Act, 2013…Preview
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  1. Q5Distinguish between an Annual General Meeting (AGM) and an Extraordinary General Meeting (EGM).Preview
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  1. Q7Explain the essentials of a valid notice of a company meeting, along with the concept of 'shorter notice', under the Companies Act, 2013.Free
  2. Q8Explain the concept of a proxy under Section 105 of the Companies Act, 2013, along with the rules governing the appointment of a proxy.Preview
  3. Q9Explain the different methods of voting at a company meeting recognised under the Companies Act, 2013.Preview
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  1. Q10The Board of Directors of Sunrise Traders Ltd. (a public company with 850 members) sends out the notice for its Annual General Meeting only…Preview