Write a note on the provisions relating to requirements of the meetings.
Meaning and purpose :Annual General Meeting is a regular meeting of the members of a company which is held annually. This meeting provides an opportunity to the members of the company to review working of the company and express their views on the management of the company.
The purpose of calling the meeting is to transact the ordinary business of the company. The ordinary business consists of:
a) The passing of the annual accounts,
(b) Declaration of dividends,
(c) Election of directors in place of those who are retiring by rotation,
(d) Appointment and fixation of the remuneration of auditors of the company.
2) Statutory meeting :
It is a statutory requirement on every company to call and hold an annual general meeting every year. The first annual general meeting of a company must be held within 18 months of its incorporation.There can be no extension of this period even by the Registrar. Subsequent annual general meeting must be held by the company each year within 6 months after the close of the financial year but the interval between any two annual general meetings must not be more than 15 months.
Financial year refers only to a period in respect of which any profit or loss account is laid at an annual general meeting whether that period is a year or not. The financial year of a company relating to a particular period may be less or more than a calendar year but shall not exceed 15 months [Sec. 166 (1)].
Annual General Meeting is a regular meeting of the members of a company which is held annually. This meeting provides an opportunity to the members of the company to review working of the company and express their views on the management of the company.
The purpose of calling the meeting is to transact the ordinary business of the company. The ordinary business consists of:
a) The passing of the annual accounts,
(b) Declaration of dividends,
(c) Election of directors in place of those who are retiring by rotation,
(d) Appointment and fixation of the remuneration of auditors of the company.
2) Statutory meeting :
It is a statutory requirement on every company to call and hold an annual general meeting every year. The first annual general meeting of a company must be held within 18 months of its incorporation.There can be no extension of this period even by the Registrar. Subsequent annual general meeting must be held by the company each year within 6 months after the close of the financial year but the interval between any two annual general meetings must not be more than 15 months.
Financial year refers only to a period in respect of which any profit or loss account is laid at an annual general meeting whether that period is a year or not. The financial year of a company relating to a particular period may be less or more than a calendar year but shall not exceed 15 months [Sec. 166 (1)].
