KNC501/KNC601 Constitution of India, Law and Engineering
Chapter 17: Sole Traders and Partnership
Unit 1
Unit 2
Unit 3
Unit 4
Unit 5
Appendix
General Meetings
An Annual General Meeting (AGM) is held to have an interaction between the management and the shareholders of the company. The Companies Act, 2013 makes it compulsory to hold an annual general meeting to discuss the yearly results, auditor’s appointment and so on. A company should follow the procedures under the Companies Act, 2013 to conduct the AGM.
What is the Procedure to Hold an AGM?
The company must give a clear 21 days’ notice to its members for calling the AGM. The notice should mention the place, the date and day of the meeting, the hour at which the meeting is scheduled. The notice should also mention the business to be conducted at the AGM.
A company should send the notice of the AGM to:
- All members of the company including their legal representative of a deceased member and assignee of an insolvent member.
- The statutory auditor(s) of the company.
- All director(s) of the company.
The notice may be given in writing through speed post or registered post or via electronic mode. The notice should be sent to the address of the member as per the records of the company. In the case of electronic communication, the notice should be sent to the e-mail address of the member as per the records of the company. The notice can be text typed in an email or an attachment to an email.
The notice of the AGM should be placed on the website of the company or any other website as may be mentioned by the government.
An AGM can be called at a notice period shorter than 21 days’ if at least 95% of the members entitled to vote in the meeting agree to the shorter notice. The consent may be given in writing or through electronic mode.
Matters Discussed in an AGM or Agenda for an AGM:
The matters discussed or business transacted in an AGM consists of:
- Consideration and adoption of the audited financial statements
- Consideration of the Director’s report and auditor’s report
- Dividend declaration to shareholders
- Appointment of directors to replace the retiring directors
- Appointment of auditors and deciding the auditor’s remuneration
- Apart from the above ordinary business, any other business may be conducted as a special business of the company.
Type of Meeting
The six most common types of business meetings are as:
- Status Update Meetings.
- Decision-Making Meetings.
- Problem-Solving Meetings.
- Team-Building Meetings.
- Idea-Sharing Meetings.
- Innovation Meetings.
