A meeting can be described as the coming together of individuals for discussing important matters. The meetings can be of many kinds: business meetings, corporate meetings, etc. According to the Oxford Dictionary, “an assembly of a number of people for entertainment, discussion or the like is considered as a meeting”. It is derived from the word ‘metan’ which means to come upon. It can also be defined as a lawful association of two or more individuals. Meetings must be properly called and conducted. Prior notice should be given to every individual who has got a right to attend the meeting at their respective addresses.

Company is derived from the Latin word ‘com’ meaning together and ‘panis’ which means bread. Corporate meetings or company meetings are the meetings that are arranged by the internal organization. They are not organized by the external parties which can easily be seen in some of the business meetings. Non-corporate meetings or business meetings can be organized by even the suppliers, government authorities, producers, manufactures, or other parties related to the business but are external parties.

Company meetings are of many kinds. Every meeting is conducted for a particular purpose or for fulfilling an objective. Some meetings are arranged for passing important decisions. Some for discussion of certain matters. Other such meetings can be organized by the officials of the corporation for the passing of certain resolutions.

Corporate meetings comprise shareholder meetings, directors meetings, creditors meetings, etc. The various types of company meetings are- Board meeting usually conducted by and for the board of directors for formulation and implementation of policies or decisions: Shareholder’s meeting consists of annual general meeting (AGM) which must be conducted every year and extraordinary general meeting (EGM) which is conducted during an emergency, for discussion of serious urgent matters which cannot be delayed till the next annual general meeting.

Shareholder’s meeting is conducted so that the members can comprehend the management of affairs of the company. A new concept is introduced in the companies act that is of shareholders democracy. It is of the shareholders, by the shareholders, and for the shareholders. It can also be called the right to speak for the shareholders.

The shareholders’ meeting is organized for members to come together and discuss the workings of the company. To gather insight as to how the board of directors are functioning. The shareholders are much interested in the affairs of the company with an aim to be satisfied with their safety of the investment. Also, they are the owners of the company. For the enforcement of their rights and to control the affairs of the company, they attend meetings.

There is a procedure to be followed for holding and conducting meetings. Every company or corporation is governed by the company law operating in their country. The corporates must comply with its rules and regulations. The law prescribes that proper notice must be given along with the agenda within time to all individuals who have a right under the companies act of the country to attend.

Annual General Meeting

An annual general meeting is also known as the meeting of and for shareholders. AGM is conducted to protect the rights of the members. It is conducted every year. Shareholders both equity and preference, board of directors, auditors, company secretaries shall attend AGM. It is conducted to discuss the affairs of the company and determine its prospects.

Two types of business are done in Annual General Meeting. They are- Ordinary business and other is Special business. The matters to be discussed must be stated in the notice. The ordinary business includes- appointment or reappointment of Directors, appointment or reappointment of Auditors, fixing remuneration and consideration of financial statements. The matters discussed other than the above-stated ones are all considered as special business.

Shareholders come together and attend General Meeting for transacting various ordinary and special business. They include- to appoint Directors and Auditors, to decide a place of Registered Office outside the state where it is presently located, to decide the place other than the registered office for safekeeping of books of accounts, to allow related party transactions, to reduce the share capital of the company, to request the Government for an investigation into the affairs of the company etc.

Extra ordinary General Meeting

Every kind of meeting other than the Annual General Meeting is Extra-Ordinary General Meeting (EGM). The business conducted in EGM is always a special business. The proper and timely notice must be given. The prerequisites of EGM are- it should be properly conducted; notice must be issued within time along with agenda and notes to agenda. The extraordinary general meeting is usually held at an irregular period. It happens when an urgent or serious matter arises. Various resolutions are proposed by the Board in the meeting, which can be passed only when duly approved by the Shareholders in EGM.

In the United Kingdom, a public company shall hold EGM if its net assets fall to half or less than the amount of its called-up share capital. EGM can be called by the board of directors and even the requisitions can also call EGM if an exigency occurs.

Board Meeting

The management and day to day functioning of the company are in the hands of the Board of Directors. It is necessary for them to meet often and discuss the important matters of the company. For a Board meeting to be validly held and conducted, proper notice must be given to each Director at their respective address registered with the company. There must be a properly constituted Board of Directors. A person must be properly elected who will be the Chairman of the meeting. A proper quorum must be present.

Various important matters are discussed by the directors in a board meeting. Such matters are connected to the normal day-to-day functioning of the company. The powers of the Board which can be exercised by them in the respective Board meetings are- to borrow monies, to discuss upon the investment of funds of the company, make calls on shareholders in respect of money unpaid on shares, to authorize buyback, approval of financial statements and board report, to finalize proposal of amalgamation, merger, or reconstruction. To take over a company and other matters as may be prescribed.

Requisites of a valid meeting

The most important requisite of a valid meeting is Notice. The word ‘notice’ is derived from the Latin word ‘notitia’ which means knowledge. While framing a Notice, three things must be kept in mind: the length of the notice, to whom it should be given, and what should be the contents of the notice.

The second prerequisite of a valid meeting is Quorum. It is the minimum number of members who are required for the valid conduction of a meeting. In certain cases, if the proper quorum is not present. The meeting is adjourned to another date and in some cases, it even stands cancelled, if the meeting is to be held for the want of the Quorum.

It is a mandatory requirement that a meeting must be chaired by an individual. It is called a presiding officer. The Chairman also known as the presiding officer is appointed to see that the meeting is being conducted in an orderly manner. During the meeting, if on passing a resolution there is equality of votes, the Chairman has a second or casting vote.

Another important prerequisite is Proxy. It has two meanings- a proxy is a person who is appointed to represent someone on its behalf. Proxy is entitled to vote on behalf of the member, who has appointed to represent him in the meeting in its absence. A proxy can also be called a document through which an agent is appointed.

Requirement and Importance

Corporate meetings are conducted for the fulfilment of a particular business. Some are held for passing a motion or resolution. These words are synonymous with each other but have different meanings in law. Motion is considered as a proposal submitted for discussion and Resolution on the other hand is considered as adoption of the motion. The Resolutions are of two types- Ordinary and special resolution. The former being a resolution in which votes cast in favour are more than the votes cast against it. The latter being a resolution in which votes cast in favour are not less than 3 times the votes cast against the resolution.

Frequently Asked Questions

How corporate meetings are conducted?

To effectively conduct a meeting. the proper and timely well-drafted notice must be given. Proper agenda must be formulated and provided within time to the attendees. The notice must also include the way attendees can vote whether by postal ballot or some other means. A person must be appointed as a chairman who will act as the presiding officer of the meeting. After the conclusion of the meetings, the minutes must be well-drafted and approved by the chairman and finalized draft must be circulated to all the attendees.

Who all attend meetings?

Usually, corporate meetings are attended by the board of directors, shareholders, auditors, their representatives etc. It depends on the kind of meeting and the agenda while deciding who will be the attendees. Any person authorized by the board of directors can attend a meeting.

What are the kinds of meetings?

The corporate meetings are of various kinds, including statutory meetings, meeting of the board i.e., the Board meeting, Meeting of shareholders i.e., AGM and EGM, meetings of creditors and other class meetings etc.