Friday, 10 October 2014

Companies Act 1956: Meetings

Nature of Meetings:
Every Company has to conduct a number of meetings and these meeting are held for shareholders, directors, debenture holders etc.
The meetings of shareholders are known as general meetings of company. These meetings are further classified into different categories, e.g., Statutory general meeting (SGM Sec 165), annual general meeting (AGM) and extraordinary general meeting (EGM).
Provisions Regarding Statutory General Meeting
Meaning of SGM:
Every public company must hold Statutory General Meeting, SGM is the first general meeting of a company after getting the certificate of commencement of business. Statutory General Meeting is not required for private companies.
Time period Regarding the SGM:
Statutory General Meeting of a company must be held after one month of getting the certificate of incorporation by within six months of getting this certificate.
Authority for calling SGM:
Statutory General Meeting must be called by board of directors only.
Statutory Report:
  • The BOD of company have to issue a notice for calling Statutory General Meeting.
  • Along with the notice the BOD have to sent the Statutory Report.
  • The SR contains detailed information regarding the incorporation of company.
  • The SR has details regarding the shares allotted by company to the public or to the directors. The SR also contains details regarding the directors and the SR contains cash receipts and payments of the company.
  • The SR must be signed by at least two directors out of which one director shall be M.D. if the company has a M.D.
  • The SR is sent to all the members of company along with the notice and the notice is sent as per section 170 and 171.

Matters to be discussed in SGM:- 
In the SGM the members are to discuss any matter as per their choice and the nature of company.

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