Distinguish between the following: 'Annual general meeting' and 'extraordinary general meeting'.
CS Executive · Company Law · PYQS · December 2016
Distinguish between the following: 'Annual general meeting' and 'extraordinary general meeting'.
Answer & Explanation:
Annual General Meeting Section 96 of Companies Act, 2013 provides that every company, other than a one person company is required to hold an annual general meeting every year. Secretarial Standard on General Meeting (SS-2) also specifies that the Board shall, every year, convene or authorize convening of a meeting of its members called the Annual General Meeting to transact items of ordinary business specifically required to be transacted at an annual general meeting as well as special business, if any. If the Board fails to convene its Annual General Meeting in any year, any Member of the company may approach the prescribed authority, which may then direct the calling of the Annual General Meeting of the company. Extra Ordinary General Meeting There are so many matters relating to the business of a company which require approval or consent of members in general meeting. It is always not possible for consideration of such matters to wait until the next annual general meeting. The articles of association of the company may have provisions for convening general meeting other than the annual general meeting. All general meetings other than annual general meeting are called extraordinary general meetings. Section 100 of Companies Act, 2013 deals with holding of Extra Ordinary General meeting.
Topics: General Meetings
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