{"id":106943,"date":"2022-03-15T14:17:58","date_gmt":"2022-03-15T08:47:58","guid":{"rendered":"https:\/\/legalwindow.in\/?p=106943"},"modified":"2023-01-02T12:03:05","modified_gmt":"2023-01-02T06:33:05","slug":"15-businesses-at-shareholders-meeting-which-can-be-transacted","status":"publish","type":"post","link":"https:\/\/www.legalwindow.in\/blog\/15-businesses-at-shareholders-meeting-which-can-be-transacted\/","title":{"rendered":"15 businesses at Shareholders Meeting which can be transacted"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-106946 size-full\" title=\"15 businesses at Shareholders Meeting which can be transacted\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/15-businesses-at-Shareholders-Meeting-which-can-be-transacted-1.png\" alt=\"15 businesses at Shareholders Meeting which can be transacted\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/15-businesses-at-Shareholders-Meeting-which-can-be-transacted-1.png 1200w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/15-businesses-at-Shareholders-Meeting-which-can-be-transacted-1-600x315.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/15-businesses-at-Shareholders-Meeting-which-can-be-transacted-1-300x158.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/15-businesses-at-Shareholders-Meeting-which-can-be-transacted-1-1024x538.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/15-businesses-at-Shareholders-Meeting-which-can-be-transacted-1-768x403.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The purpose of an Annual General Meeting (AGM) is for the company&#8217;s management and shareholders to engage. <\/span><span style=\"font-weight: 400;\">The Companies Act,\u00a02013<\/span><span style=\"font-weight: 400;\"> mandates the holding of an annual general meeting to examine the financial performance, the appointment of an auditor, and other matters. Some of the business that can be transacted at a shareholder meeting and such transaction shall be dealt with under the shareholders meeting that may be conducted under annual General Meeting or extra general meeting of shareholders under Companies Act, 2013. Before we shall discuss 15 businesses at the Shareholders Meeting in detail, let us discuss <a href=\"https:\/\/legalwindow.in\/process-of-extension-of-holding-annual-general-meeting\/\" target=\"_blank\" rel=\"noopener\">Annual General Meeting (AGM)<\/a> which has a significant relationship with it.<\/span><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><b>Table of Content<\/b><\/p>\n<ul>\n<li><a href=\"#Annual\">15 Businesses at Shareholders Meeting-Annual General Meeting<\/a><\/li>\n<li><a href=\"#Need\">15 Businesses at Shareholders Meeting- Need for conducting of Shareholders Meeting<\/a><\/li>\n<li><a href=\"#15\">15 businesses at Shareholders Meeting<\/a><\/li>\n<li><a href=\"#Members\">Members&#8217; Rights at an Annual General Meeting<\/a><\/li>\n<li><a href=\"#For\">For the AGM, there must be a quorum<\/a><\/li>\n<li><a href=\"#Penalty\">Penalty for failing to convene the Shareholders&#8217; Meeting<\/a><\/li>\n<li><a href=\"#Endnote\">Endnote<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"Annual\"><b>15 Businesses at Shareholders Meeting-Annual General Meeting<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">An Annual General Meeting (AGM) is a gathering of a company&#8217;s interested shareholders held once a year. At an AGM, the company&#8217;s directors deliver an annual report to shareholders that include information on the company&#8217;s performance and strategy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Shareholders having voting rights vote on current topics such as the board of director nominations, executive remuneration, dividend distributions, and auditor selection.<\/span><\/p>\n<h2 id=\"Need\"><b>15 Businesses at Shareholders Meeting- Need for conducting of Shareholders Meeting<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Except for <\/span><a href=\"https:\/\/legalwindow.in\/one-person-company\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">one-person companies (OPCs)<\/span><\/a><span style=\"font-weight: 400;\">, all firms shall conduct an annual general meeting (AGM) at the conclusion of each fiscal year. A company&#8217;s AGM must be held within six months of the conclusion of the financial year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the event of a first annual general meeting, however, the firm must convene the meeting within nine months after the conclusion of the first fiscal year. There is no requirement to convene an AGM in the year of incorporation if the first AGM has already done. It&#8217;s important to keep in mind that the duration between two annual general meetings should not be more than 15 months.<\/span><\/p>\n<h2 id=\"15\"><b>15 businesses at Shareholders Meeting<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Some of the business that can be conducted at a shareholders meeting, and such transactions shall be dealt with under the shareholders meeting, which may be an annual general meeting or an extra general meeting of shareholders under the Companies Act, 2013 are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0The audited financial accounts are considered and adopted.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Review of the Director&#8217;s Report and the Auditor&#8217;s Report<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0The announcement of a dividend to shareholders.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Appointment of new directors to replace those who are stepping down.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Appointment of auditors and determination of their compensation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In addition to the aforesaid regular business, the corporation may perform any additional business as a special <\/span><span style=\"font-weight: 400;\">business<\/span><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ordinary <\/span><span style=\"font-weight: 400;\">company<\/span><span style=\"font-weight: 400;\"> business will be decided by an ordinary resolution in which the number of votes cast in favour of the resolution exceeds the number of votes cast against it.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, depending on the applicable legislative rules, the resolution may enacted as an ordinary resolution or a special resolution in the event of unique commercial transactions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0A special resolution must receive at least 75% of the vote in order to pass.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An AGM should only be takes place between the hours of 9 a.m. and 6 p.m. during business hours.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The conference can take place on any day that isn&#8217;t a national holiday, including holidays proclaimed by the government.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The meeting can take place at any location that is within the city, town, or village where the registered office is located.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A government company&#8217;s annual general meeting (AGM) can takes place anywhere when the Central Government approves it.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After getting written or electronic authorization from its members, an unlisting business can convene an AGM anywhere in India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0The Board of Directors of a Section 8 corporation determines the date, time, and location of the AGM based on directives provided during a general meeting of the company.<\/span><\/li>\n<\/ul>\n<h2 id=\"Members\"><b>Members&#8217; Rights at an Annual General Meeting<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The AGM is open to all company members (including shareholders) who choose to attend and vote. Members can use a paper ballot, a postal ballot, or e-voting to cast their votes. Members can appoint proxies to represent them at AGMs and vote for them. The proxy includes the member&#8217;s signature on the proxy form and will have a designation in writing on it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The authorized signatory of the corporation shall sign the proxy form and attaches its seal to it. And it is so, a corporate shareholder appoints a proxy on it. The members might choose one of them to be the meeting&#8217;s chairman. However, if the company&#8217;s articles of association call for a chairman, that person will preside over the AGM.<\/span><\/p>\n<h2 id=\"For\"><b>For the AGM, there must be a quorum<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The quorum is the number of members who must be present for the meeting&#8217;s proceedings to be valid.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Quorum for a <\/span><a href=\"https:\/\/legalwindow.in\/public-limited-company\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Public Company<\/span><\/a><span style=\"font-weight: 400;\"> shall be:<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\"> If the firm has fewer than 1000 members,\u00a05 members must be personally present.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> 15 members in person; if the firm has between 1000 and 5000 members.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> 30 members in person; if the firm has more than 5000 members.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In the case of a <\/span><a href=\"https:\/\/legalwindow.in\/private-limited-company\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Private company<\/span><\/a><span style=\"font-weight: 400;\">, the quorum must consist of two members who are personally present.<\/span><\/li>\n<\/ul>\n<h2 id=\"Penalty\"><b>Penalty for failing to convene the Shareholders&#8217; Meeting<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">If the company fails to convene its annual general meeting; Then, the firm and each of its officers will be liable to pay a fine of up to 1,00,000 rupees. Moreover, with an additional punishment of 5000 rupees for each day that the failure persists.<\/span><\/p>\n<h2><a href=\"https:\/\/legalwindow.in\/xbrl-filing\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-110911 size-full\" title=\"Get ROC XBRL Annual filings starting from \u20b9 7000\/-.\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Get-ROC-XBRL-Annual-filings-starting-from-7000-.png\" alt=\"\" width=\"1000\" height=\"200\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Get-ROC-XBRL-Annual-filings-starting-from-7000-.png 1000w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Get-ROC-XBRL-Annual-filings-starting-from-7000--600x120.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Get-ROC-XBRL-Annual-filings-starting-from-7000--300x60.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Get-ROC-XBRL-Annual-filings-starting-from-7000--768x154.png 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><\/h2>\n<h2 id=\"Endnote\"><b>Endnote<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Shareholders&#8217; meeting\u00a0allows members to discuss the company&#8217;s affairs in a group setting. Moreover, to exercise ultimate control over the company&#8217;s management. If a company fails to hold its Shareholders&#8217;\u00a0Meeting in any given year; then any shareholder has the legal right to petition the <\/span><a href=\"https:\/\/nclt.gov.in\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">National Company Law Tribunal<\/span><\/a><span style=\"font-weight: 400;\"> to call or direct the company to hold its Annual General Meeting.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For more information about Shareholders Meeting, kindly connect to our <\/span><span style=\"font-weight: 400;\">Experts<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The purpose of an Annual General Meeting (AGM) is for the company&#8217;s management and shareholders to engage. The Companies Act,\u00a02013 mandates the holding of an annual general meeting&hellip;<\/p>\n","protected":false},"author":5,"featured_media":106947,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26],"tags":[],"class_list":["post-106943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>15 businesses at Shareholders Meeting which can be transacted<\/title>\n<meta name=\"description\" content=\"Read about 15 businesses at Shareholders Meeting which can be transacted. 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