Question

If the rights of a particular class of share holders is to be changed than company should call __________.

• A. shareholders meeting
• B. directors
• C. class meetings
• D. preference shareholder meeting

Answer 1

The correct option is C class meetings

Class meetings are meetings which are held by holders of a particular class of shares, e.g., preference shareholders. Such meetings are normally called when it is proposed to vary the rights of that particular class of shares. At such meetings, these members discuss the pros and cons of the proposal and vote accordingly. Class meetings are held to pass resolution which will bind only the members of the class concerned, and only members of that class can attend and vote. Unless the articles of the company or a contract binding on the persons concerned otherwise provides, all provisions pertaining to calling of a general meeting and its conduct apply to class meetings in like manner as they apply with respect to general meetings of the company.