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   /   m   o   c Quest Questio ion n No 17: . Defin Define e the term “ Company Me Meeting” . Explain the   e differe dif ferent nt t ypes of mee m eetin tings gs in a JSC? JSC?   e   r  An  A n s w er: er :    f COMPANY MEETINGS:   e Definitions:   n “When tw t w o or more m ore pers persons ons sit t ogether in order t o solve solve any problem pro blem or o r t o discus discusss any mat m at   i t er by a pervious pervi ous not ice, ice, suc such h    l gat hering is t ermed as meet meet ing.”    n “Gat “Gat hering of t w o or more mor e  o people by an agreeme agreement nt or by mut ual arrangeme arr angement nt for    l t he disc discuss ussion or f or any kind of t ransac ransactt ion r elevant elevant t o t he busines businesss is known as meet meet ing.”     l   aof Company Meetings: Kinds / Types . company prospectus there are Broadly speaking form the two main kinds of meetings   w commonly known as:   w   w    /    /   :   p     t    t    h OR

   /   m   o   c  A.  A . Board of Directors Directors ’ . Meeting B.   e Shareholders’ Meeting   e   r A. BOARD OF DIRECTORS’ (BOD) MEETINGS: Directors are those persons who   f are appointed by the shareholders in order to run the day to day business   e affairs. Hence the directors are responsible for all   nmeetings i n which the business activities. Hence “ The mee    imatters directors decide decide the business matters o r c ompany matters are called called b oard mee m   l eetin tings.” gs.”   n Occasion:   o The BOD meeting should be held at least one in every three months and at least   l one for every financial year.    l Notice:   a The notice of BOD meetings such be send sewed to the . directors of the company in writing within due time.   w   w Duty: It is the duty of the   w company’s sectary to make the arrangements related to the directors meeting. The    / sectary prepares the agenda for the meeting.    /   : Quorum:   p     t    t    h

   /   m The quorum of BOD meeting is four or 1/3 of the directors whichever is more. In case of no quorum   o the meeting must   c be postponed. . Speci Special al Featu Features: res:   e I. The chairman of Board can call the meeting.   ethe Head Office. II. Usually such meeting is held at   r the directors III.  A notice in writing must be sewed IV. The decisions related to meeting are made with    f simple majority of shares.   e V. The company sectary writes the minutes of   n meeting. Objects of o f BOD Meeting Meeting s:    i    l is held in order to Usually a BOD of directors meeting achieve any of the following   n objectives: I. To issue the shares of company.   o II. To invest companies meeting.    l III. To make loans of a company.    l profit. IV. To allocate company’s V. To make call for the  a company’s meetings. VI. To declare the profit. of a company.(Interim dividend) VII. To check and approve the company’s Accounts.   w   w GS: B. SHAREHOLDE SHAREHOLDERS’ RS’ MEETINGS: MEETIN   w Ordinance 1984.There  According to the Companies usually three kinds of company meetings also termed as    / shareholder meetings.    / a) Statutory tatuto ry Meetin eeting g b )  An  A n n u al Gener Gen  : eral al Meeti Meet i n g c) Extra Ordinary Ordi   p  nary General General Meeting Meeting    t    t    h rd

   /   m a) Statutory Meeting [Sec.157]:   o Meaning: Statutory meeting is the first meeting of   c the members of a public limited company. It is held only once in the life of a . public limited company. It can be commanded by the   e directors only.   e   r By whom it is held: held: Every Registered Company is required to hold such kind    f of meeting. Usually Registered Companies are   e categorized in to the following categories:   n Company Limited by Shares    i Company Limited by Guarantee Every private limited company    l converted into public limited company   n   o Occasion:    lnot less than 3months and not Such meeting must be held    lthe date of Commencement of more than 6months from Business.   a .   w Notice:   wthe notice of such meeting in  At least 21days before writing must be send send the relevant relevant parties. parties.   wto the    / Objects of Meetin eeting: g:    / Such kind of meeting is understand to achieve the   : following objectives: I. To discuss  p  the statutory report. II. To give    t the idea about the working of a company.    t    h

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   /   m III. To give the detail of agreements made by the   o company..   c IV. To introduce directors to shareholders. V. To discuss the working of a company. . VI. To give the detail of use of company capital.   e Default Default in i n Holdi ng Meetin eeting: g:   eto hold such kind of  A company may be dissolved if it fails   r meeting.    f   e   n    i    l b) Annual General Meeting[Sec.158]:   n Meaning:   o  Annual general meeting is the open meeting of    l performance of the company shareholders in which annual    lare allowed to criticize the is discussed. Shareholders performance of directors   ain such meeting. . Occasion:   w For the very first time it is to be held within 18months from   w and than once every financial the date of Incorporation year.   w    / Notice:    /  At least 21days before the notice of such meeting must be sewed in writing  : to every shareholder.   p  Objectiv es    t whic h prom ote trade: trade:    t    h

   /   m Following are the main objects of Annual general meeting:   o I.  Appointment of Auditors.   c II. Election of Directors. III. To declare Dividend (Final). . IV. To check the Remuneration of Directors, Auditors   e and Managing Directors.   e   r Default:  According to Companies Ordinance a company may be    f dissolved if it to held an annual general   e meeting.   n c) Extra Ordinary General Meeting [Sec.159]:    i Meaning:    lsome special or any urgent This kind of meeting is held for kind of work. All the meetings other than the general and   n statutory meeting can be termed as extra ordinary general   o meetings.    l    l Occasion: Such kind of meeting can be held from time to time as   a provided in the articles of. the company.   w Notice:   w the meeting date notice must be  At least 14 days before sewed to the shareholder, if an extra ordinary resolution is   w to be passed than in this case 21 days before in notice    / writing should be sewed.    /   :h prom ote trade: Objectiv es whic trade: Such kinds of   p  meetings are conducted for some special kind of changes    t like:    t    h

   /   m I. For issuing debentures.   o article of II. To alter any clause in memorandum and   c association. III. For reorganization the share capital .of a company. IV. For the voluntary wind up of a company.   e V. To make the liability of directors unlimited.   e of directors. VI. To confirm the past and remuneration   r VII. To investigate the company affairs. VIII. To sanction additional remuneration of agents.    f IX. To remove the managing agents for its carelessness.   e X. To invest the company affairs.   n    i    l   n   o Extra Ordi Ordinary nary Resol Resoluti ution: on:    lis passed by 3/4th majority of  An extra ordinary resolution    l of resolution a 14 days’ notice shareholder. For such kinds must be held and sewed   ato each member  . Objective bjectives s which promote trade trade::   w Following are the main objects:   w I. To remove directors II. To appoint new  w directors in replace of removed directors    / III. To voluntary wind up the company due to heavy    / liability   : between company’s creditors IV. To make settlement V. To change  p  article and memorandum of company    t    t    h

   /   m Note:   oresolution of For the quorum of all kinds of meetings and company, a pewee is also considered or  c accounted for the present members if article permits. .   e   e   r    f   e   n    i    l   n   o    l    l   a .   w   w   w    /    /   :   p     t    t    h

Conclusion: In short statuary meeting conduct once in the life of company, director’s meeting 4 times in a year, annual general meeting once in a year but deals all important matters related to company, extra ordinary meeting call once in a while to settle those matters which which cannot be delayed till annual general general meeting. Mostly directors call these meetings.