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Jun 30
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Company General Meeting
Posted by:MyEfilings
Extraordinary General Meeting of Company

All the meetings of the members of the Company, except Annual General Meeting, are called Extraordinary General Meeting of the Company. There is a gap of 12 to 18 months between two Annual General Meetings of the Company. Therefore for any important business where share holders’ approval is required, Extraordinary General Meeting is called.

Circumstances under which Extraordinary General Meeting is called

  • The Board of Directors may call the Extraordinary General Meeting whenever they think is necessary.
  • The Board of Directors may call the Extraordinary General Meeting at the requisition of members.
  • The requisitionists themselves can call the Extraordinary General Meeting as per the provisions of Companies Act, 2013.

Extraordinary General Meeting by requisition of Members

The Board of Directors may call the Extraordinary General Meeting at the requisition of members. However such request should be signed by holders of not less than one tenth of paid up capital of the Company. If the Company fails to proceed within 21 days of receipt of the requisition and call the meeting within 45 days of receipt of the requisition, the members themselves may call the meeting with same agenda within 3 months of receipt of requisition by company but after 45 days of requisition.

When to hold Extraordinary General Meeting

An Extraordinary General Meeting can be held on any day which is not a national holiday declared by the Central Government.

Resolutions at Extraordinary General Meeting

As per Companies Act, 2013, all the business considered at an Extraordinary General Meeting is special business. Since all the businesses considered at the Extraordinary General Meeting are special businesses, the notice to the members consists of an explanatory statement. The explanatory statement explains the nature of business, information and facts about the business to be considered at the Extraordinary General Meeting.  The explanatory statement enables the members to understand the implications of the resolution and take their decision.

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