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EORUPA SCIENCE & COMMERCE ACADEMY

Q. No. 15: Explain the different types of meetings of Joint Stock Company? ANSWER:

DIFFERENT TYPES OF MEETINGS


INTRODUCTION: A company has to hold different types of meeting during its lifetime. These meetings are held according to circumstances of the business. MEANING OF MEETING: A meeting may is a gathering together of two or more person by the previous notice or by mutual arrangement for the discussion and transaction of some business. A meeting of members of a company is called company general meetings. KINDS OF COMPANYS MEETING: According to the companys ordinance, 1984 there are three kinds of meetings, which are held by the company. These meeting are:-1) Statutory Meeting 2) Annual general meeting 3) Extra Ordinary General Meeting 1) STATUTORY MEETING (SECTION 157): Statutory meeting is the first meeting of the members of a public limited company. It is held once in the life of a public company. The directors of the company can convene it only. Condition to Hold meeting: According to the companies ordinance 1984, that the statutory meeting should be held with the period of not less than 3 months and not more than 6 months from the date at which the company has been provided with commencement certificate. Companies required holding meetings: The statutory meeting held by: a) Every public limited company limited by shares. b) Every company limited by guarantee. c) Every private company converted into a public company. Requisites for meeting: It is provided in section 157(2) of the companys ordinance that the directors shall send a notice for statutory meeting at least 21 days before the day of the meeting to all the shareholders of the company directors shall also send the statutory report duly certified by not less than three directors, one of whose the chief executive of the company. Particulars stated in notice: Notice of the meeting must contain the following particulars. a) Declaration of holding a statutory meeting. b) Date of the meeting. c) Time of the meeting. d) Place of the meeting. Objectives of Meeting: Following are the objectives of the statutory meeting. a) Consideration of statutory report. b) Different business matters relating to the company since its registration.

Prepared By:H. ABDUL REHMAN

0321-6485593

EORUPA SCIENCE & COMMERCE ACADEMY


c) Business matters and plans of the company. d) Affairs about the allotment of shares and cash received in this respect. Default in holding statutory meeting: A company may be wound up if default is made in delivering the statutory report to the or in holding the statutory meeting. 2) ANNUAL MEETING: According to the companies ordinance, 1984, every company, without exception, shall hold general meeting of its members every year. This 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 annual 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. Companies required holding meeting: In postman every company incorporated under companys ordinance 1984 is required to hold annual general meeting. Time of Meeting: Every company is required to hold its first annual general meeting within 18 months since its incorporation. Moreover annual general meeting shall be held at least once in a calendar year within the 6 months after the close of its financial year and not more than 15 months of the holding of its proceeding annual general meeting. Time Extension: In case of some reason a 90 days time extension is allowed to hold annual general meeting. This time extension is a given to a listed company by the authority but in case of non-listed company, registrar is the authority to allow this relief time. Business to be conducted: The annual general meeting is mainly held for doing to 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 to the members. The ordinary business of the meeting is as follows: 1) Consideration and adoption of the audited annual accounts of the company. 2) Declaration of the dividends. 3) The election of directors. 4) Appointment of directors. Purpose of Meeting: The purpose of the annual general meeting is to examine the past years working of the company and to determine various other administrative matters. In this meeting the ultimate control of shareholders over the affairs of the company is established. Penalty: If default is made in holding this meeting the company and every officer of the company shall be liable to fine. Winding Up:

Prepared By:H. ABDUL REHMAN

0321-6485593

EORUPA SCIENCE & COMMERCE ACADEMY


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. Notice of Meeting: A notice of 21 days before the date of meeting should be sent to the members of the company. 3) EXTRA ORDINARY GENERAL MEETING Section 159): Meaning: All general meetings of a company other than annual general meeting and the statutory meeting shall be called extraordinary general meeting. Notice of meeting: A notice of 21 days before the date of meeting should be sent to the members of the company. Business of the meeting: Such meeting is conducted for doing some special nature of business. 1) For issuing debentures. 2) For altering clause in a memorandum and articles of association. 3) For reorganizing the share capital of the company. How the meeting is called: The extra ordinary general meeting may be called in the following three ways: 1. The directors may at any time call and extra ordinary general meeting to consider any affairs which they think it necessary. 2. The directors my call the meeting on the requisition of the shareholders representing more than one tenth of voting powers. 3. The requistionists may themselves call the meeting, if the directors do not proceed within 21 days of calling the meeting. In such case a situation the meeting must be held within 3 month from the date of the day requisition. Time Limit: There is no prescribed time laid down in the articles for holding this meeting. It may be held time to time. Purpose of the meeting: The extra-ordinary general meeting is called only: When some special business is not 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 till the annual meeting. CONCLUSION: All the meetings of the company are very important and are held by the company to the requirement and circumstance.

Prepared By:H. ABDUL REHMAN

0321-6485593