AGM & EGM Meeting Rules | cls Chartered Secretaries

AGM & EGM Meeting Rules · Acknowledging receipt of the financial statements that would have been laid before the AGM · Resolving all such matters as would have ... TherulesregardingmembersmeetingsarecontainedinPart4CorporateGovernanceoftheCompaniesAct2014.Thesemeetingsareimportantasthedirectorsdonotholdallthepowersofacompanyandcertaindecisionsmustbereferredbacktothemembersforapproval.BeforeanAGMorEGMisconvened,theconstitutionofthecompanyandtheCompaniesAct2014shouldbereviewedtoestablishthemeetingrulesforthatcompanyorcompanytype.AGM’sSection175providesacompanyisrequiredtoholdanAnnualGeneralMeetingineachyearandnotmorethan15monthsshallelapsebetweenAGM’s.ThefirstAGMmustholditsfirstAGMwithin18monthsofincorporation.DispensewithHoldinganAGM AnLTDcompanymaydispensewithholdingtheAGMwhereallthemembersentitledtoattendandvotesignawrittenresolutiondispensingwiththeAGMandAcknowledgingreceiptofthefinancialstatementsthatwouldhavebeenlaidbeforetheAGMResolvingallsuchmattersaswouldhavebeenresolvedattheAGMConfirmingthereisnochangeintheperson(ifany)appointedasstatutoryauditorofthecompanyThisresolutionmustbepassedineachcalendaryear.Othercompanytypes(DAC,PLC,DAC&UC)thataresinglemembercompaniesmayalsodispensewithholdingtheAGMandpasstheaboveresolution.TheODCEhasthepowertoinstructanAGMbeheldandcandirectthattheconstitutionbeamendedinrelationtothecalling,holdingandconductingthemeeting.LocationofgeneralmeetingAnAGMorEGMmaybeheldinsideoroutsideoftheState.Ifheldoutsideofthestate,thecompanymustarrangeforthetechnologicalneedsofthemembers.Themeetingscanbeheldin2ormorevenuesatthesametimeusingappropriatetechnologyinaccordancewithSection176.EGM’sAnyothermeetingofmembersotherthantheAGMshallbeanExtraordinaryGeneralMeeting.Thedirectorsmay,whenevertheythinkfit,conveneanEGM.ConveninganEGMbythemembersSec178providesthatoneormoremembersholding,ortogetherholding,atanytimenotlessthan50percentofthepaidupsharecapitalofthecompany,carriestherightofvotingatgeneralmeetingsofthecompanymayconveneanEGM.Thecompanyshouldseekadviceonwhethertechnologyallowsattendeestovoteandwhethertheconstitutionprovidesforthis.Thedirectorsofthecompanyshall,ontherequisitionofoneormoremembersholdingnotlessthan10percentofvotingrights,forthwithproceedtoconveneanEGMPersonsentitledtonoticeofgeneralmeetingsNoticeofgeneralmeetingsshallbegivento:(a)everymember;(b)thepersonalrepresentativeofadeceasedmember(c)theassigneeinbankruptcyofabankruptmemberofthecompany(d)thedirectorsandsecretaryofthecompany.Theauditorisalsoentitledtoreceivenoticeofgeneralmeetings.NoticePeriodsTheconstitutioncanprovideforlongerbutnotshorternoticethanwhatisprovidedforinSec181whichprovides:-(a)inthecaseoftheannualgeneralmeetingoranextraordinarygeneralmeetingforthepassingofaspecialresolution,bynotlessthan21days’notice;(b)inthecaseofanyotherextraordinarygeneralmeeting,bynotlessthan7days’notice.Ageneralmeetingcanbeheldatshorternoticeifallthemembersandtheauditorsconsenttothemeetingbeingheldatshorternotice.ElectronicNoticestoMembers(Sec218)ElectronicnoticeshallapplytoanycaseinwhichaprovisionoftheAct,orofthecompany’sconstitution,requiresorauthorisesanoticetobeservedonorgiventoamemberofthecompanybythecompany,oranofficerofit,butsavetotheextentthattheconstitutionprovidesotherwise.Ifthecompany’sconstitutionpermitstheuseofelectronicmeanstoserveorgivethenoticeifthememberhasconsentedinwritingtothecompany,ortheofficerofit,usingelectronicmeanstoserveorgivenoticesinrelationtohimorher.CirculationoftheFinancialStatements(Sec338)Thefinancialstatementsmustbesenttothemembers21daysbeforethemeetingandthemembersmayconsenttoreceiptatshorternotice.Sec338permitsthecirculationofthefinancialstatementselectronicallywherethecompanyandthememberhaveagreedtoaccessthefinancialstatementsonawebsite,thememberisnotifiedinatimeandwaythathasbeenagreedandplaceandwaytoaccesstheinformationhasbeenprovided.QuorumNobusinessshallbetransactedatanygeneralmeetingofacompanyunlessaquorumofmembersispresentatthetimewhenthemeetingproceedstobusiness.2membersofacompanypresentinpersonorbyproxyatageneralmeetingofitshallbeaquorum.Inthecaseofasingle-membercompany,onememberofthecompanypresentinpersonorbyproxyatageneralmeetingofitshallbeaquorum.ProxiesAnymemberofacompanyentitledtoattendandvoteatameetingofthecompanyshallbeentitledtoappointanotherperson(whetheramemberornot)ashisorherproxytoattendandvoteinsteadofhimorher.Theproxyshouldbeinwriting,signedbytheappointerorhisorherattorneyanddepositedattheregisteredoffice48hoursbeforetheholdingofthemeeting.BusinessoftheAGMThebusinessoftheAGM(a)theconsiderationofthecompany’sstatutoryfinancialstatementsandthereportofthedirectorsand,unlessthecompanyisentitledtoandhasavaileditselfoftheauditexemptionundersection360or365,thereportofthestatutoryauditorsonthosestatementsandthatreport;(b)thereviewbythemembersofthecompany’saffairs;(c)savewherethecompany’sconstitutionprovidesotherwise—(i)thedeclarationofadividend(ifany)ofanamountnotexceedingtheamountrecommendedbythedirectors;and(ii)theauthorisationofthedirectorstoapprovetheremunerationofthestatutoryauditors(ifany);(d)wherethecompany’sconstitutionsoprovides,theelectionandre-electionofdirectors;(e)savewherethecompanyisentitledtoandhasavaileditselfoftheexemptionreferredtoinparagraph(a),theappointmentorre-appointmentofstatutoryauditors;and(f)wherethecompany’sconstitutionsoprovides,theremunerationofthedirectors.ProceedingsandholdingofgeneralmeetingsThechairperson,ifany,oftheboardofdirectorsshallpresideaschairpersonateverygeneralmeetingofthecompany.Unlessapollisdemandedinaccordancewithsection189,atanygeneralmeetingaresolutionputtothevoteofthemeetingshallbedecidedonashowofhands.Wherethereisanequalityofvotes,whetheronashowofhandsoronapoll,thechairpersonshallbeentitledtoasecondorcastingvote.VotesofmembersSubjecttoanyrightsorrestrictionsforthetimebeingattachedtoanyclassorclassesofshares,whereamatterisbeingdecided—(a)onashowofhands,everymemberpresentinpersonandeveryproxyshallhaveonevote,butsothatnoindividualmembershallhavemorethanonevote;and(b)onapoll,everymembershall,whetherpresentinpersonorbyproxy,haveonevoteforeachshareofwhichheorsheistheholderorforeach€15ofstockheldbyhimorher,asthecasemaybe.RighttodemandapollApollmaybedemandedinrelationtoamatter(whetherbeforeoronthedeclarationoftheresultoftheshowofhandsinrelationtoit).Ademandforsuchapollmaybemadeby—(a)thechairpersonofthemeeting;(b)atleast3memberspresentinpersonorbyproxy;(c)anymemberormemberspresentinpersonorbyproxyandrepresentingnotlessthan10percentofthetotalvotingrightsofallthemembersofthecompanyconcernedhavingtherighttovoteatthemeeting;orMinutesAcompanyisrequiredtokeepminutesoftheAGMandEGMinaccordancewithSec199.SeearticleonMemberResolutions.HowCanCLSHelpWecanassistindraftingAGMorEGMdocumentationtorecordanychangetothecorporatestructureofacompany.Wecanalsoassistfirmsinpreparingtemplateminutesforcommonchangesinacompany.FormoreinformationpleasecontactoneoftheCoSecTeamon0599186776orcosec@clscs.iePleaseNote:OurCLSInsightsaimstobringyoupracticalinformationandnewsonCompanyLawandCompanySecretarial.Wecoverthetopicsthatmattertoyourbusinessandgivepracticaltipsandalsothebenefitourexperiences.Pleaserememberthisarticleisaguideandlegaladviceshouldalwaysbeobtained.Ifyouhaveanyqueriesplease contactoneoftheteam andwewouldbehappytohelp. Relatedposts: DirectorsMeetingsandResolutions Howdoyoumeet?–CompanyMeetingRules TemporaryRulesforHoldingElectronicMeetingsSharethison... 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