Different Kinds of Company Meetings
Different Kinds of Company Meetings
Company meetings are essential for decision-making, governance, and compliance. They provide a platform for shareholders, directors, and members to discuss company affairs.
1. General Meetings
General meetings are meetings of the company’s members (shareholders). There are two main types:
a) Annual General Meeting (AGM):
Held once every financial year.
Purpose: To present the annual accounts, declare dividends, appoint or reappoint directors, and auditors, and transact routine business.
Must be held within 6 months from the end of the financial year, and not more than 15 months between two AGMs.
b) Extraordinary General Meeting (EGM):
Held any time other than the AGM.
Purpose: To discuss urgent or special matters that cannot wait until the next AGM, such as approval of mergers, changes in company’s capital structure, or removal of directors.
2. Board Meetings
Meetings of the company’s Board of Directors.
Purpose: To take decisions on the management and affairs of the company, like approving budgets, financial statements, policies, and business strategies.
Usually held periodically (e.g., monthly or quarterly).
3. Class Meetings
Meetings of a particular class of shareholders or debenture holders.
Purpose: When a resolution affects a specific class of members differently (e.g., altering rights attached to a certain class of shares).
4. Committee Meetings
Meetings of a committee appointed by the Board (e.g., Audit Committee, Nomination & Remuneration Committee).
Purpose: To discuss specialized issues and make recommendations to the Board.
Summary Table:
| Meeting Type | Participants | Purpose | Frequency |
|---|---|---|---|
| Annual General Meeting (AGM) | Shareholders | Routine business, approval of accounts | Once a year |
| Extraordinary General Meeting (EGM) | Shareholders | Urgent/special business | As needed |
| Board Meeting | Board of Directors | Management decisions | Periodically |
| Class Meeting | Specific class of shareholders | Rights and interests of a class | As required |
| Committee Meeting | Board-appointed committees | Specialized discussions & recommendations | As required |
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