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Questions and Answers
What is the timeframe within which the Board must call a meeting in response to a valid requisition?
What happens if the Board fails to call a meeting within the required timeframe?
How must a meeting called by the requisitionists be conducted?
Who is responsible for reimbursing the reasonable expenses incurred by the requisitionists in calling a meeting?
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What happens to the sums reimbursed to the requisitionists by the company?
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What is the provision for calling an extraordinary general meeting of a company?
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Who can requisition the Board to call an extraordinary general meeting of a company?
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What is the requirement for a requisition made under sub-section (2)?
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What is the purpose of a requisition made under sub-section (2)?
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Where should an extraordinary general meeting of a company be held?
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Study Notes
Calling an Extraordinary General Meeting
- The Board of Directors of a company can call an extraordinary general meeting whenever it deems fit.
- An extraordinary general meeting of the company, except for a wholly owned subsidiary of a company incorporated outside India, must be held within India.
Requisition for Extraordinary General Meeting
- The Board shall call an extraordinary general meeting at the requisition of:
- In a company with share capital, members holding at least 1/10th of the paid-up share capital that carries voting rights.
- In a company without share capital, members holding at least 1/10th of the total voting power of all members with voting rights.
Contents and Signing of Requisition
- The requisition must set out the matters to be considered at the meeting and be signed by the requisitionists.
- The requisition is sent to the registered office of the company.
Timeframe for Calling a Meeting
- If the Board does not call a meeting within 21 days of receiving a valid requisition, the requisitionists can call and hold the meeting themselves.
- The meeting must be held within 3 months of the date of the requisition.
Conducting the Meeting
- A meeting called by the requisitionists must be conducted in the same manner as a meeting called by the Board.
Reimbursement of Expenses
- The company shall reimburse the requisitionists for reasonable expenses incurred in calling a meeting.
- The reimbursed amount shall be deducted from the fee or remuneration payable to the directors who defaulted on calling the meeting.
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Description
This quiz is about the provisions of Indian Company Law related to extraordinary general meetings of a company. It covers the powers of the Board of Directors to call such meetings and the requisites for holding them.