Business operations consist of a number of activities to be undertaken and performed. One of them is meetings. Meetings are held in business organizations to decide, discuss on important matters and main elements of the business for growth and smooth working of company. There are two types of general meetings. One is annual general meetings and the other is known as extraordinary general meetings. These meetings have different functions to perform and are considered important for smooth functioning of a company's business operations.
Annual General Meetings
Annual general meeting held once in a year. The main function of these meetings is to consider the annual reports and director's reports of the company and also elect directors and auditors in certain companies. Every company mandatorily requires to hold an annual general meeting except OPC whereas it is a part of some company's criteria and company's articles to hold such meetings.
Extraordinary general meetings
Other than Annual General Meetings are known as extraordinary general meetings. The Board may, whenever it deems fit, call an extraordinary general meeting and they shall call these meetings anytime when the requisition made by class of shareholders. If in any case the directors won't call the meeting then the members themselves can call the meeting and in extreme situations even the court can call such meetings.
Notice of annual general meeting and extraordinary general meeting.
For calling a general meeting whether it's AGM or EGM, Notice shall be given to every Shareholder, Director, Auditor etc. who is entitled to attend or vote at least 21 day's clear prior to the date of meeting. Exception to the rule is that companies may call general meetings after obtaining consent of shareholders as mentioned below:-
- Not less than ninety-five per cent of the members entitled to vote at such meeting
The notice shall specify the date, time and venue of the meeting and also proposed resolutions which are to be discussed at meeting along with explanatory statement disclosing material facts and other facts of resolutions. Non-receipt of notice of the meeting shall not invalidate the proceedings of the meeting.