Decide whether the length of the notice is proper in the following cases with reference to the provisions of the Companies Act, 2013? Particulars Case I – Sky Ltd. Case II – Moon Ltd. Date of Annual General Meeting 30th

CS Executive · Company Law · PYQS · June 2022
Decide whether the length of the notice is proper in the following cases with reference to the provisions of the Companies Act, 2013? Particulars Case I – Sky Ltd. Case II – Moon Ltd. Date of Annual General Meeting 30th September, 2021 30th September, 2021 Date of sending notice by post 5th September, 2021 7th September, 2021 What would be your stand in case if Sky Ltd. and Moon Ltd. are section 8 companies?

Answer & Explanation:

As per section 101 of the Companies Act, 2013, a General Meeting of company may be called by giving not less than 21 clear days' notice either in writing or through electronic mode. Clear days' means exclusive of the day of the notice of service and of the day on which the meeting is held. When a notice of General Meeting is sent by post, it shall be deemed to be served at the expiration of 48 hours after the letter containing the same is posted - Rule 35 of the Companies (Incorporation) Rules, 2014. Each of 21 days must be full or complete days. The day on which the notice is deemed to be served on the member and the day of the general meeting have to be in addition to the 21 days. Case-I - Sky Ltd. Case-II - Moon Ltd. No. of days from the date of sending notice by post to the date of meeting 26 days 24 days Less: Day of meeting 1 day 1 day Less: Day of sending notice by post 1 day 1 day Less: 2 days (equivalent to 48 hours) after date of posting 2 days 2 days Number of clear days 22 days 20 days Length of notice Proper Shorter In case of section 8 company, a General Meeting of company may be called by giving 14 clear days' notice instead of 21 clear days. Hence, if Sky Ltd., and Moon Ltd. Are section 8 companies, notice issued for General Meeting is proper.

Topics: Meetings of Board and its Powers

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