When two or more persons gather or assemble to make decisions through mutual discussion, a meeting takes place. Different organizations arrange various meetings on other occasions. We arrange or participate in meetings, whether formal or informal, social or business. It may involve assembling or gathering two or more persons at a fixed time and place to discuss predetermined matters and make decisions.
Meaning of Company Meetings.
Meetings can be of various types based on formality, purpose, use, legality, participation, and more. Types of meetings are formal meetings, annual general meetings (AGM), statutory meetings, board meetings, and informal meetings.
Meeting or plural form “Meetings” can be defined as; “A gathering of people; as for a business, social, or religious purpose.”
Meetings we know how important part meetings play in our professional lives. But they a very important role in other parts of our life.
Meetings can be of various types based on formality, purpose, use, legality, participation, and more.
However, the main principle of the meeting is remaining common: a gathering of people. In this post, we will look at meetings in terms of the formality of them.
11 Types of Meetings
Statutory Meetings
Statutory meetings are called so that the directors and shareholders can communicate and consider special reports. Companies are required by law to hold these statutory meetings.
As per company law, it is the first meeting of the shareholders of a public Ltd. company. Every company limited by shares and also every company limited by guarantee and having a share capital must hold this meeting within a specified period, i.e., not less than one month and more than six months from the date at which the company is entitled to commence business.
The main objectives of the statutory meeting are:
- to discuss the success of the floatation and
- to approve any modifications in the contracts specified in the prospectus.
Every company limited by shares and every company limited by guarantee and having a share capital shall, within not less than one month and not more than six months from the date at which the company is entitled to commence a business, hold a general meeting of the members of the company.
This meeting is called the ‘statutory meeting.’ This is the first meeting of the shareholders of a public company and is held only once in the lifetime of a company.
Statutory report: The Board of directors shall, at least 21 days (based on Companies Act) before the day on which the meeting is to be held, forward a report, called the ‘statutory report,’ to every member of the company.
Procedure at the meeting;
- List of members,
- Discussion of matters relating to a formational aspect,
- Adjournment.
Objects of the meeting and report;
- To put the members of the company in possession of all the important facts relating to the company.
- To provide the members an opportunity to meet and discuss the management, methods, and prospects of the company.
- To approve the modification of the terms of any contract named in the prospectus.
Annual General Meeting
AGMs are held once a year to assess the trading of the organization over the year. All shareholders are invited to intend the GM, but they must be given 21 days’ notice.
This meeting of the shareholders (i.e., AGM) is held once every year. The first AGM must be held within the first month of its incorporation, and the subsequent AGMs must be held in each accounting year.
The time gap between one AGM to the next should not be more than 15 (fifteen) months. The main purpose of such meetings is to discuss the affairs of the company, approve the accounts, and appoint directors.
Company to hold an annual general meeting every year. Every company shall in each year hold, in addition to any other meetings, a general meeting as its annual general meeting and shall specify the meeting as such in the notice calling it.
There shall not be more than 15 months between one annual general meeting and the other. But the first annual general meeting should be held within 18 months from the date of its incorporation.
The Registrar may, for any special reason, extend the time for holding an annual general meeting by a period not exceeding 3 months. But no extension of time is granted for holding the first annual general meeting.
Every annual general meeting shall be called during business hours on a day that is not a public holiday.
It shall be held either at the registered office of the company or at some other place within the city, town, or village in which the registered office of the company is situated.
As regards holding the annual general meeting, no distinction is made between a public company and a private company.
A general meeting of a company may be called by giving not less than 21 days’ notice in writing.
Annual general meeting a statutory requirement
The annual general meeting of a company is a statutory requirement. It has to be called even where the company did not function during the year.
Canceling or postponing of the convened meeting
Where an annual general meeting is convened for a particular date and notice is issued to the members, the Board of Directors can cancel or postpone the holding of the meeting on that date provided power is exercised for bona fide and proper reasons.
Canceling of failure to hold an annual general meeting
If a company fails to hold an annual general meeting:
- Any member can apply to the Company Law Board to call the meeting.
- The company and every default officer shall be punished with a fine.
Powers of Company Law Board to call an annual general meeting
If a company defaults in holding an annual general meeting, any company member may apply to the Company Law Board for calling such a meeting.
Penalty for default
If a company makes the default by holding a meeting by Company Law or in complying with any direction of the Company Law Board calling a meeting, the company and every officer of the company who is in default shall be punishable with a fine.
Extraordinary General Meeting
A statutory meeting and an annual general meeting of a company are called ordinary meetings.
Any meeting other than these meetings is called an extraordinary general meeting. It is called for transacting some urgent or special business which cannot be postponed till the next annual general meeting.
It may be convened. (1) By the Board of Directors on its own or on the requisition of the members; or (2) by the requisitionists themselves on the failure of the Board of Directors to call the meeting.
- The Board of directors convened the extraordinary meeting. The Board of directors may call an extraordinary general meeting:
- On its own.
- On the requisition of the members.
- An extraordinary meeting convened by the requisitionists Power of Company Law Board to order meeting: If for any reason it is impracticable for a company to call, hold or conduct an extraordinary general meeting, the Company Law Board may call an extraordinary meeting.
Class Meetings
A meeting that is held by a particular class of shareholders to transact business affecting their interest only is called a class meeting—for example, a meeting of the preference shareholders or a meeting of the equity shareholders, etc.
Under the Companies Act, class meetings of various kinds of shareholders and creditors must be held under different circumstances.
Class meetings of the holders of different classes of shares are to be held if the rights attaching to these shares are to be varied.
Requisites of a Valid Meeting
A meeting can validly transact any business if the following requirements are satisfied;
- The meeting must be duly convened by proper authority.
- Proper notice must be served in the prescribed manner.
- A quorum must be present.
- A chairperson must preside.
- Minutes of the proceedings must be kept.
Learn more about the types of meetings from this article.
Extraordinary General Meetings
All general meetings of shareholders other than the statutory and general meetings are called extraordinary meetings. Such meetings of the shareholders are generally held to consider an urgent matter that cannot be postponed until the next AGM.
Board Meetings
The directors of a company are collectively considered as a board. The board (of directors) is given wide power to take necessary decisions in board meetings for performing the company’s activities.
Committee Meetings
The board of directors may form different committees to perform specific functions, such as committees to investigate the causes of (i) falling productivity, (ii) increasing discontent among workers, etc.
Formal Meetings
The rules of conduct of formal meetings are laid dozen in a company’s Articles of Association and/or Constitution or Standing Orders.
With such meetings, a quorum must be present, i.e., the minimum number of people who should be present to validate the meeting. A formal record of these meetings must be kept, usually by the company secretary.
Board Meetings
Board meetings are held as often as individual organizations require. They are attended by all directors and chaired by the Chairman of the board.
Informal Meetings
Informal meetings are not restricted by the same rules and regulations as formal meetings.
Such meetings may take the form of brainstorming or discussion sessions where strict agendas may not be necessary, and minutes may not be kept.
However, it is usually considered good business practice for an agenda to be issued to all members before the meetings so that they can be prepared adequately to make a valuable contribution.
These meetings are attended by a group of managers who may need to discuss a specific matter, report of progress reports.
For example, the marketing manager, sales manager, production manager, and research and development manager may meet to discuss the launch of a new product being launched soon.
