Types of Company Meetings
According to the companies ordinance 1984, there are three types of company meetings which are held by a company. These company meetings can be classified into;
- Statutory meeting
- Annual general meeting
- Extraordinary general meeting
we discuss briefly the different types of company meetings held in an organization below;
This is the first type of company meeting is Statutory meeting. It is the first meeting of the members of a public limited company. It is held only once in the life of a public company. It can be convened by the directors of the company only.
By whom and when held: the statutory meeting is held by;
- Every public limited company limited by shares
- Every limited by guarantee and
- Every private company converted into a public company
The statutory meeting in case of a company limited by shares shall be held 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.
You may also like to Read:
How is the meeting convened?
It is provided in section 157(2) of the companies ordinance that the director shall send a notice of statutory meeting at least 21 days before the day of the meeting to all the shareholders of the company. The directors shall also send the statutory report duly certified by not less than three directors, one of whom shall be the chief executive of the company.
Business of the meeting:
The business of the meeting is to consider the statutory report. The statutory report contains a brief account of the state of company’s affairs since its incorporation and the business plan.
It describes the shares allotted by the company; cash received in respect of such shares allotted an abstract of the receipts and payments of a company, names occupation of the directors etc
Privileges of the members: the members of the company present at the meeting shall be at liberty to discuss any matter relating to the formation of the company or arising out of the statutory report.
Default in holding a statutory meeting: A company may be wound up if the default is made in delivering the statutory report to the registrar or in holding the statutory meeting.
Annual General Meeting:
This is the second type of company meeting. According to the companies ordinance 1984 , every company, without exception , shall hold a general meeting of its members every year . this annual general meeting is to be convened and held by the directors of the company. The members have no authority to convene the annual general meeting of the company.
Notice of meeting:
The notice of the general meeting shall be sent to the shareholders at least 21 days before the date fixed for the meeting.
Place of meeting:
The annual general meeting , shall in the case of a listed company, be held in the town in which the registered office of the company is situated.
Business to be conducted:
The annual general meeting is mainly held for doing the ordinary business. However, if the article permits any special business may also be conducted at the annual general meeting by giving its notice along with the notice of the annual general meeting of the members. The ordinary business of the meeting is as follow;
- Consideration and adoption of the audited annual accounts of the company
- Declaration of the dividends
- The election of the directors.
- Appointment of directors.
According to companies ordinance section 305(b) a company may be wound up by the court if it does not hold two consecutive annual general meetings.
Extra –Ordinary General Meeting
This is the third type of company meeting. Extraordinary general meeting meaning that all the general meeting of a company other than annual general meeting and the statutory meeting shall be called the extra-ordinary general meeting.
How the meeting is called. The extra general meeting may be called in the following three ways.
- The directors may call the meeting on the requisition of the shareholders representing not less than one-tenth of the voting power.
- The directors may call the meeting on the requisition of the shareholders representing not less than one-tenth of the voting powers.
- The requisitionists may themselves call the meeting if the directors do not proceed within 21 days of calling the meeting. In such a situation the meeting must be held within 3 months from the date of the deposit of requisitions.
Purpose: the extraordinary general meeting is called only;
- When some special business is to be conducted.
- The business as per articles cannot be transacted at the annual general meeting.
- The business is of such an important nature that it cannot be deferred until the annual general meeting.