Company directors and shareholders hold a variety of meetings to keep their eyes on the ongoing activities in charge. Annual General Meetings are conducted for this purpose, where directors report back with updates from previous months/years that affect them as well as other key information about company affairs. A Statutory Meeting can also take place if certain events happen such as mergers or acquisitions by another entity affecting the ownership of its shares pattern.
Statutory Meeting Vs. Annual General Meeting
The Annual Meeting is the once-a-year mandatory meeting in public companies. It’s different from Statutory Meetings, which can be held any time and are only required by law for large-scale businesses with more than 20 shareholders or four directors on their board of trustees.
The meetings are a chance to update the shareholders on how their investment has been performing and what future plans are in store for them. Shareholders can ask questions about anything related to running or managing businesses, so it’s important that you attend these events if you want to continue being involved!
The Statutory meeting is the very first formal meeting of a company. It must be held within 1 month to 6 months from the date of commencement, but it can only occur once in that firm’s lifespan.
Comparison Table Between Annual General Meeting and Statutory Meeting
|Parameter of Comparison||The Annual General Meeting||The Statutory Meeting|
|Definition||The Annual General Meeting is the perfect time to get up-to-date on important company news, learn about any changes in management, and elect directors who will lead your business this coming year.
These meetings are compulsory for all shareholders so it’s best if you attend!
|A statutory meeting is the 1st in-person gathering for a company that has shared capital. These types of meetings often happen after starting a business and can be as simple or formal as you want them to be, depending on your preference!|
|First Meeting||The annual general meeting of a company should be conducted within 18 months after its incorporation.||The board of directors is required to hold a meeting within 1 month and six months.|
|Company Type||Both private and public companies.||Only Public Companies|
|Number of Meetings||Held every year regularly.||Once in a lifetime.|
|The objective and role of the meeting||Every year, the board of directors is elected by shareholders and it’s their responsibility to keep them updated with any progress or challenges in order for feedback on issues concerning company management.||To make sure that the shareholders are always kept informed about what’s going on with their company, share allotments and contracts are announced.|
What is the Annual General Meeting?
The annual meeting, the meeting of the shareholders, is a compulsory event that must be held once during the year, and within six months from its end.
The company’s directors are normally called upon to discuss issues of importance for the future. This includes updates on important resolutions taken by management and any other relevant information about their progress in running this organization also what staff members might be retiring soon etcetera!
A company’s annual meeting is a time where shareholders can give feedback to the directors and voice their opinion about who should be in charge for next year.
The authority is required to publish a notice for the Annual General Meeting 21 days prior to the meeting. In addition to that, there should be certified copies of your company’s Profit & Loss and Account Balance sheet as well as an Auditor’s report delivered straight into members’ hands.
However, such Meetings can commence at the members’ request if they agree in advance on when it takes place.
The Union Government can call an Annual General Meeting if the company is unsuccessful to hold one. This meeting would be called at their request and the instructions are given by them relevant for the purpose of directing business in accordance with the law, which includes keeping records on such occasions as well so that everything runs smoothly from now onward too!
A company that delays the annual meeting for a certain period may be fined up to 500 Rupees, also an additional 250 every day until everything is settled.
What is a Statutory Meeting?
The meeting is called only once in the entire lifetime of any company, and it must be held within one month or more from its commencement date.
At the statutory meeting, shareholders should be informed about what has been happening with their new company. This includes things like how much money was allotted for them in stocks and whether or not there have been any setbacks so far!
In order not to have a statutory meeting, you can be either private or a public one with limited liability. If your company has been registered earlier as an Incorporated Association and then converted into some Public Company according to the 43A section it does NOT need to convene such meetings anymore because at that point there is no share capital involved so they do less work for us!
“Statutory Meeting” notices and reports should be received by those who are entitled members 21 days prior to a statutory meeting.
This report should contain info about the company’s share offerings, including how many shares have been sold and to whom they were traded. It also needs an overall summary of all receipts/transactions made by this firm so far as well as Directors’ names in case there are any lawsuits filed against them or other legal proceedings arising out of their time at head office.
A company can be wound up by the court if they fail to hold this meeting.
Difference Between Statutory Meeting and Annual General Meeting
The company’s General Meeting and Annual General Meetings serve two different purposes. The statutory meeting is commenced for only a single time in the entire lifespan of a business, while annual board members have to attend an AGM within 6 months after their completed accounting period ends.
The Annual General and Statutory meetings are not completely different, the main difference being that an AGM is open to both public shareholders as well as company directors while a Statutory meeting only has shareholders with limited voting rights.
While it is not mandatory to commence the 1st Annual Meeting within18 months, this should be done if possible. The Statutory Meeting in public companies must take place no more than 6 months after incorporation or resolutions will need to be passed at an earlier meeting due in part because there’s only so much time available each year for these types of events.
The Annual General Meeting is the perfect opportunity for you, as a shareholder of this company and an interested party in its management team; we want to let everyone know about our progress thus far. We also look forward with excitement towards all future decisions that will be made during these meetings!
A Statutory Meeting is an important event for any corporation because it gives the shareholders a chance to learn about what’s going on with their investment.
The directors of a company that does not convene an Annual General Meeting can be compensated Rs 500, also an extra amount of 250 rupees per day for every continuous period that they are defaulting. When a company’s directors or shareholders don’t convene an annual meeting, the law court can close it.
The annual general meeting is the most important shareholder meeting as it keeps them informed about company performance. The statutory boardroom session ensures that all shareholders are kept up-to-date with what’s happening within your business, even if you can’t make it in person like some other types of gatherings require!
Annual General Meeting can help directors to keep an eye on the random resolutions or decisions made by real managers. Statutory Meetings, however, allow for more discussion and tracking of company progress from year-to-date all throughout its first few years in operation – giving them an idea about what success may look like ahead!
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