When members of a company gather at a specific time and place to discuss business affairs of company, such get together is called company meeting. Under companies Ordinance, three kinds of meeting have been provided for discussion and decisions of various matters regarding company.
When a meeting is held by a company limited by shares or by a company limited a grantee, which has a share capital, such meeting is called statutory meeting. Statutory meeting is the first meeting of company limited by shares or by a company limited by a guarantee, which has a share capital, and it is held once in life of such company.
Explanation of Statutory Meeting and Statutory report
Following points are important for explanation.
i. Holding of Statutory Meeting
Statutory meeting can be held by a company limited by shares or by a company limited by a guarantee, which has a share capital or by a private company, which is converted into a public company.
ii. Time for Holding of statutory Meeting
Statutory meeting should be held after 3 months, but before 6 months of obtaining of certificate of commencement of business.
Iii. Statutory Report
At least twenty-one days before that date on which statutory meeting is held, directors should forward a statutory report to every member of company.
iv. Information in Statutory Report
Statutory report consists of several information.
- Statutory report states total number of shares, which have been allotted
- Statutory report distinguishes hares, which are not allotted in cash.
- Statutory report states consideration for which shares have been allotted.
- Statutory report states total amount of cash, which has been received by company in respect of all those shares, which have been allotted.
- Statutory report states total receipts and total payments of company.
- Statutory report states names, addresses and occupations of directors, chief executive, secretary, auditors and legal advisors of company, and also describes any changes in this regard.
v. Discussion during Statutory Meeting
Members of company, who are present at statutory meeting, can discuss any matter, which is about formation of company or which arises out of statutory report.
vi. Adjournment of Statutory Meeting
Statutory meeting can be adjourned from time to time, and an adjourned meeting has the same powers as an original meeting.
Vii. Court’s Jurisdiction
If a petition is presented to court for winding up of company on ground of default in filing of statutory report or in holding of statutory meeting, court can direct for filling of statutory report or holding of a meeting or can make that other order, which is just.
viii. Penalty against Default
As far as default is concerned in respect of provisions about statutory meeting, listed company or any other company and its every officer, who knowingly and willfully authorizes or permits such default, are liable to fine.
To conclude, it can be stated that three kinds of meeting of company have been provided under companies ordinance. These meetings are statutory meeting, annual general meeting and extra-ordinary general meeting. It can be mentioned that all these three kinds of meeting are of different nature; these meetings are held at different times and fulfill different objectives.