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PDF Editor FAQ

What is the difference between a general meeting and an extraordinary general meeting?

A general meeting includes both Annual General Meeting (AGM) as well as Extra Ordinary General Meeting (EOGM), any shareholders meeting other than AGM shall be considered as EOGM.

What is the explanatory statement in the Companies Act 2013?

Explanatory Statement is governed under Section 102 of the Companies Act.It is a statement annexed to the Notice of the General Meetings of a Company.Explanatory Statement is only given for each item of Special Business in the Notice, and not for the items of Ordinary Business.In case of Annual General Meetings, it is given for items of Business apart form Ordinary Business viz. consideration of Financial Statements, declaration of dividend, appointment of Director in place of a retiring Director, or appointment of, and fixing the remuneration of Auditors.In case of Extraordinary General Meeting (EGM), it is given for all the items of Business in the Notice, as all resolutions put to vote in an EGM are deemed to be items of Special Business.It entails the meaning, purpose, justification, benefits, etc. of the resolution being put to vote, along with the interest of any Director, Manager, Key Managerial Personnel or their relatives respectively, in any item(s) of business.It is a crucial document as it serves as an attachment in various forms files with the Ministry of Corporate Affairs (MCA).

Does owning 1 single share of a company stock really grant special privileges, like being able to go to some company meetings?

(Depending on the jurisdiction) Owing Ordinary Stock of a company usually gives you the privilege of:a) having your name listed in a big book of shareholdersb) be given notice of Annual General Meetings and Special/ExtraOrdinary General Meetings (NOT Board meetings) and to attend such meetings.c) receive information and documents from the companyd) demand that the Company Secretary provide you with access to examine the books” of the company, upon you providing sufficient noticee) receive a dividend payment from the company (if paid out)

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