Meetings of CoMpany

By:Rizwan Ahmed
 Meetings of Company
• Meetings of the company are of three kinds:
• 1. Meetings of Members
2. Meetings of creditors
3• Meetings of Directors
Meetings of Members
• These meetings are general meetings as they are attended by all the
members.
• The management of the company is undertaken through meetings of
the company’s shareholders where major decisions are to be taken.
The meetings are usually called by directors, but may also be called by
the shareholder.
In case of default the Commission may call a meeting, either of its own
accord or on the application of membershareholders
Meetings of Members

• Types of meetings of the shareholders:

• The meetings of the shareholders are of three types:
1. The Statutory Meeting
2. The Annual General Meeting
3. Extra Ordinary General Meeting
 Meetings of Members
• The Statutory Meeting: • The statutory meeting is the first meeting
of the members of the company after it commences business. It is
held once in lifetime of the company.
• Section 157(1) states that “ every company limited by shares and
every company limited by guarantee and having a share capital shall ,
within a period of not less than three months, nor more than six
months, from the date at which the company is entitled to commence
business, hold a general meeting of the members of the company,
which shall be called ‘the statutory meeting’”.
The Statutory Meeting:

• • Subsection (12) states that this section shall not apply to a private
company.
• Thus the following companies are required to hold the statutory
meeting:
• Every public company limited by shares.
• Every company limited by guarantee and having a share capital.
The Statutory Meeting:
• Requirements of Statutory Meeting: Following are the
requirements of statutory meeting:
• It is to be held within a period of three to six months after the
commencement of business.
• Twenty one days before the date on which the meeting is held, the
director shall forward a report, “the Statutory Report” to every
member. The report is to be certified by the CEO and two other
directors. After certification a copy is to be sent to the registrar and
the auditors.
The Statutory Meeting
• The Statutory report includes the following:
− List of Members
− Shares allotted and the amount received from them
− Particulars of the directors, managers and secretary
− Particulars of contracts that have to be approved
− The detail of company’s affairs along with fees and brokerage paid.
• The members present at meeting are at liberty to disclose any
matter relating to the formation of the company.
2. Annual General Meeting (AGM)

• The Annual General Meeting (AGM) is a required meeting under the

ordinance. It is an annual meeting through which the shareholders
control the affairs of the company. They may raise questions about
the affairs of the company including its accounts. It is, therefore, the
annual general meeting of the company that protects the interest of
the company
2. Annual General Meeting (AGM)
• Requirements of AGM:
Following are the requirements of AGM:
i. It must be held every year.
ii. The first AGM is to be held within eighteen months of
incorporation.
iii. Every subsequent(coming) AGM is to be held within four months
of the closing
2. Annual General Meeting (AGM)

• iv. Notice of the date of the meeting is to be send twenty one days
before such date to the shareholders whereas in case of a listed
company the notice is also required to be published in the
newspaper.
v. In case of default in complying with any of these requirements all
officers party to such default shall be held liable. vi. The gap between
two AGMs should not be more than fifteen months.
2. Annual General Meeting (AGM)

• • Agenda of AGM:
• In this meeting the following matters are usually considered.
• Annual accounts of the company
• Declaration of dividend
• Retirement and appointment of auditors
• retirement and appointment of Directors
3. Extra Ordinary General Meeting
• • According to section 159 all general meetings of a company , other
than AGM and the statutory meeting are called Extra Ordinary
General Meeting. Such meetings are called to deal with some urgent
special business that can not be postponed till the AGM.
These meetings are called by two ways:
i. Calling of Extra Ordinary General Meeting by Directors
ii. Calling of Extra Ordinary General Meeting on the Requisition of
Members.
3. Extra Ordinary General Meeting
• Calling of Extra Ordinary General Meeting by Directors:
• The directors may at any time call the Extra Ordinary General
Meeting of the company to consider any matter which requires the
approval of the company in general meeting.
ii. Calling of Extra Ordinary General Meeting on the Requisition of
Members.
• The directors shall, on the requisition of members representing the
one tenth of the voting power on the date of deposit of requisition,
forthwith to proceed to call an extra ordinary general meeting
3. Extra Ordinary General Meeting
• Requirements of Calling Extra Ordinary General Meeting on the
Requisition of Members.
• Requirements of Calling Extra Ordinary General Meeting on the
Requisition of Members are following:
i. The requisition shall state the objects of the meeting.
ii. It will be signed by the requisitionists. iii. The requisition will be
deposited at the registered office of the company.
3. Extra Ordinary General Meeting

• If the directors do not proceed within the twentyone days from the
date of the requisition being so deposited to call a meeting, the
requisitionists may themselves call the meeting.
v. The meeting so called shall be held within three months from the
date of depositing such requisition.
vi. The meeting will be called in the same manner as the meetings are
called by directors
3. Extra Ordinary General Meeting

• Notice of an Extra Ordinary General Meeting:

• The notice of an Extra Ordinary General Meeting shall be send to
the members at least twenty one days before the date of the meeting
and in case of a listed company it shall also be published in
newspaper