A) Shareholders Meetings:
The meetings, which are called to discuss the affairs of company with shareholders, are called shareholders’ meeting. These meetings have following three kinds.
1. Statutory Meeting (Section 157):
This is the first meeting of the company and it is held once only in the whole life of the company.
Bound to Conduct:
Every company limited by shares and limited by guarantee is required to hold this meeting within prescribed time under section 157.
. Time of Meeting:
Statutory meeting (company limited by share) shell be held within a period of neither less than three months nor more than six months from the date of getting the certificate of commencement of business.
Notice of Meeting:
A notice of 21 days must be forwarded in writing to each shareholder before this meeting.
Conducting Authority:
The company promoters are liable to conduct the statutory meeting with in the given time.
Purpose of Meeting
The important purpose of this kind of meeting is to provide exact and latest information to shareholders regarding the activities of the company like as;
1. To discuss the various clauses of the statutory reports
2. To win confidence of the shareholders of the company
3. To give the detail use of company capital
Default in Holding the Statutory Meeting:
A company may be wound up if default is made in delivering the statutory report to the registrar or in holding the statutory meeting.
2. Annual General Meeting [Sec 158]:
Bound/Compulsory to Conduct:
All the company registered under the Companies Ordinance 1984 [Sec. 158] are legally bound to conduct the annual general meeting.
Schedule/Time of Meeting:
First general meeting of every company must be held within 18 months from the date of its incorporation and there after once in every calendar year. The interval between any two meetings must not be more than 15 months.
Conducting Authority:
The directors of the company are responsible to hold the annual general meeting
Extension of Time:
In case of listed company, the Commission (SECP) and in case of non- listed company, the Registrar can extend the time of holding the annual general meeting on account of some special reason up to a period of 60 days. However, this period shall not be extended in case of first annual general meeting
Notice of Meeting:
A notice of 21 days in writing must be served to each shareholder for this
meeting.
Venue/Place of Meeting:
In case of listed company, annual general meeting should be held in town
Role of Shareholders:
where the registered office of the company is situated. The shareholders can criticize the policies of the directors and other officers and can offer suggestions for their improvement.
Purpose of Meeting:
Generally the following types of business are conducted at this meeting:
1. Appointment of auditors.
2. Declaration of dividend
3. Election of directors in place of retired directors:
4. Consideration and approval of annual accounts, balance sheet and reports of directors
5. Fixation of the directors, auditors and managing agent’s remuneration. All the foregoing matters are disposed of by ordinary resolution of the shareholders
Consequences of Default [Section 158(4)]:
If default is made in holding this meeting the company and every officer of the company shall be liable to fine. A company may be wound up by the court if default is made in holding two consecutive annual general meetings.
3. Extraordinary General Meeting:
This kind of meeting is conducted for some particular and urgent nature of job which cannot be postponed till next annual general meeting In other words, all general meetings of the company other than annual general meeting and statutory meeting are called Extra Ordinary general meeting
Bound to Conduct
Extra ordinary meeting may be held at any time.
Conducted Authority:
The extra ordinary meeting may be called in the following three ways
1. Directors have right to call this meeting at any time.
2 The Directors may call on the requisition of the shareholders representing not less than one tenth of the voting powers.
3. Shareholders have rights to conduct the meeting if the directors fail to do.
.Notice of Meeting:
Under section 164 a notice of 14 days must be served to each shareholder for such meeting, where a special resolution is to be passed, in this case 21
days notice should be sent.
Purpose of Meeting:
Such meeting is conducted for doing some special nature of business i.e
. 1. For issuing debentures
2. For altering clause in a Memorandum and Articles of Association
3. For re-organizing the share capital of the company
B) Director’s Meetings:
The members of the company elect their representatives to run the business and management of the company. These representatives are called the directors of the company and they are different in different companies All the business affairs are settled with the mutual consultation of all directors So, the meeting called for directors to discuss the policies or to take decision is called director’s meeting
Time of Meeting:
Director’s meeting of every company must be held at least once in every three months and at least four such meetings must be held in every year. Duty to Conduct: It is the duty of company secretary to make arrangements for the meetings of the directors under the articles of association and Companies
Ordinance 1984.
Quorum of Meeting:
The quorum of the meeting is four or one third of the director whichever is more. In case there is no quorum the meeting is to be postponed.
Purposes of Meeting:
1. To allot shares.
2 To make loans.
3. To recommend divided.
4. To appoint officers of the company. 5. To discuss the contracts of the company.
6. To invest company’s fund.
7. To check and approve the accounts of the company.
Conclusion:
According to Companies Ordinance Dfa ho 1984, all the meetings of the company are very important and are held by the company according to the requirement and circumstances
