Home > Topics > Business Laws > Company Meetings

Company Meetings 📋

Definition: A meeting is a gathering of members/directors to discuss company matters and pass resolutions(decisions making decisions).

Importance: Major decisions require formal meetings (Not WhatsApp groups!).

Requisites (Essential Requirements) of a Valid Meeting 📝

For a meeting to be legally valid:

  1. Proper Authority: Called by competent person (Board/Requisitionists).
  2. Proper Notice: Written notice with date, time, venue, agenda.
  3. Proper Time & Place: During business hours, accessible venue.
  4. Quorum Present: Minimum number of members required.
  5. Chairman: Meeting must be presided over by chairperson.
  6. Conduct: As per Companies Act and Articles of Association.
  7. Minutes: Written record of proceedings.
Quorum = Minimum Attendance

Quorum is the minimum number of members who must be present for the meeting to be valid.

For Public Company: 5 members personally present. For Private Company: 2 members personally present.

If No Quorum: Meeting adjourned (postponed) to same day next week.

Types of Company Meetings ðŸĒ

1. Shareholders' Meetings

  • Statutory Meeting: First meeting after IPO (only for public companies) - Now ABOLISHED (from 2015).
  • Annual General Meeting (AGM): Every year, within 6 months of financial year end.
  • Extraordinary General Meeting (EGM): For urgent matters, can be called anytime.

2. Board Meetings

  • Meeting of directors only.
  • At least 4 times a year (gap â‰Ī 120 days).
  • Quorum: 1/3rd of total directors or 2 directors (whichever higher).

3. Class Meetings

  • Meeting of holders of a particular class of shares (e.g., Preference shareholders).

Who Can Call Meetings? 📞

Meeting TypeWho Can Call
AGMBoard of Directors (mandatory).
EGMBoard, OR Requisitionists (10% shareholders), OR Tribunal.
Board MeetingChairman, MD, or any 2 directors.

Notice Period ⏰

Meeting TypeMinimum Notice
AGM21 days (clear notice).
EGM21 days (Can be shorter with 95% consent).
Board Meeting7 days.

Clear Notice: Excludes day of sending AND day of meeting. Example: Meeting on 30th. Notice sent on 1st. Clear days = 8th to 29th = Valid if â‰Ĩ 21 days.

Quiz Time! ðŸŽŊ

Test Your Knowledge

Question 1 of 5

1. Quorum for a public company general meeting is:

2 members
3 members
5 members
10 members

ðŸ’Ą Final Wisdom: "Meetings are democracy in action. Proper notice, quorum, and minutes ensure fairness and transparency!" ðŸ—ģïļ

Next up: Notices, Proxies, Agenda & Quorum - The mechanics! 📄

← PreviousNext →