Tuesday, 14 June 2011

Explain the Different types of meetings of joint stock company

it is the first meeting of a company shareholders. Its objective is to inform the shareholders about the affairs of the company Statutory meeting is held once only in the whole life of the company. Statutory meeting is held by every limited company. Meeting should be held within the prescribed period mentioned in the company ordinance. Following are the important features of statutory meeting.

1. Objects of statutory meeting :-
Its main purpose is t provide exact and latest information about the affairs of the company.
ii. To win the confidence of the shareholders of the company.
iii. To discuss the statutory report.

2. Period of meeting :- Statutory meeting can be held after three months from the date of commencement . But there should be no delay more than six months.

3. Notice :- Before this meeting 21 days notice must be given to each shareholders by the Secretary.A statutory report should also be enclosed with the notice.

4. Call of meeting :- Only directors of the company are authorized call the statutory meeting.

In the statutory report following information provided.
1. Total number of shares allotted.
2. Summary of cash received.
3. List of basic expenses of the company.
4. Detail of commission for the sale of shares, if any.
5. The particulars of that contract in which modification is being made.
6. The names and addresses of the company directors, auditors, managers and secretary.
7. The arrears if any due on calls from directors, or managing agents.
The directors of the company have to forward a statement report to each member at least 21 days before the day of meeting. Such report must be certified by not less than two directors. A copy of statutory report must be filed with registrar office after forwarding it to members. If a statutory meting is not held in time of statutory report is not submitted in time then any share holder can go to Court.

Every company calls Annual general meeting of the shareholders.It is the open meeting of the shareholders in which various reports are submitted by the directors. Shareholders can criticize the policies of the directors and can suggest various measures to solve the problems of the company. There should be interval between the two annual meeting but more than 15 months.

Main characteristics of Annual general meeting :-
Annual general meeting is held according the company ordinance.
2. It is the responsibility of company that it should call annual meeting.
3. First meeting should be held within 18 months from the date of incorporation.
4. The interval between the meetings should not be more than 15 months.
5. A notice of meeting should be served 21 days before the date of meeting.
6. This meeting will be called by the directors.
7. If directors fail to call the meeting in due period then penalty can be imposed on them.

Objects of annual general meeting :-
Election of directors.
2. Appointment of auditors.
3. Declaration of dividends.
4. Fixation of directors, auditors and managing agents remuneration.
5. Shareholders can criticize the policies of the directors.
6. Directors submit reports about the management.
7. Shareholders can suggest measures.
8. Auditors report and balance sheet is presented in this meeting.

If any problem is created suddenly which can not be postpone till the next annual meet is conducted to solve this problem.

Features of extra ordinary meeting :-
1. Time limit :- There is no prescribed time laid down in the articles for holding this meeting. It may be held from time to time.
2. Right to call meeting :- A. Board of directors may call the meeting at any time. B. Share holders who have not less than 110 of the voting power can call the meeting.
3. Notice :- To call the extra ordinary meeting 21 days notice is served.

Objects of extra ordinary meeting :-
To issue the debentures.
B. To alter the Memorandum and Articles.
C. To alter the share capital of the company.
D. To solve the most important problems.

Procedure :- The share holders have to submit their demand to the secretary of the company. He will arrange to call the meeting with the consultation of the directors. If the directors fail to hold this meeting with in 21 days . Then shareholders may call such meeting within 3 months. The expenses of the meeting will bear the company.


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