Indian Company Law - Extraordinary General Meeting

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?

What happens to the sums reimbursed to the requisitionists by the company?

What is the provision for calling an extraordinary general meeting of a company?

Who can requisition the Board to call an extraordinary general meeting of a company?

What is the requirement for a requisition made under sub-section (2)?

What is the purpose of a requisition made under sub-section (2)?

Where should an extraordinary general meeting of a company be held?

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.

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.