Referring to the provisions of Companies Act, 2013, explain the mode of sending the notice of the general meeting including the notice of Extraordinary General Meeting (EGM) called by the requisitionists themselves on fa

CS Executive · Company Law · PYQS · December 2024
Referring to the provisions of Companies Act, 2013, explain the mode of sending the notice of the general meeting including the notice of Extraordinary General Meeting (EGM) called by the requisitionists themselves on failure of the Board to call a requisitioned EGM. Can the company issue such notice by ordinary post ?

Answer & Explanation:

According to Para 1.2.2 of Secretarial Standards on General Meetings (Secretarial Standard-2), Notice of the General Meeting can be sent, inter alia, by ordinary post also. According to Para 1.2.2 supra, Notice of the General Meeting shall be sent to members by registered post or speed post or courier or e-mail and NOT by ordinary post in the following cases- If the company provides the facility of e-voting u/s 108 If the item of business is being transacted through postal ballot u/s 110 In terms of Rule 17(8) of the Companies (Management and Administration Rules), 2014, Notice of the Extraordinary General Meeting (EGM) shall be sent to the members by registered post or speed post or e-mail if the meeting is called by the requisitionists themselves where the Board of Directors (BOD) has not proceeded to call the EGM within the stipulated period of three months from the date of requisition. As per Section 118(10) of the Act, every company shall observe Secretarial Standards with respect to General Meetings as specified by ICSI and as approved by the Central Government. Hence, the above provisions are mandatory for every company as per Secretarial Standard-2.

Topics: General Meetings

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