18 February 2011
Dear Sir(s)/Madam(s) Can any one give me guideline regarding short notice for call EGM by a public ltd. co. and what may be shortest period for short notice.
19 February 2011
As per the provisions of section 171 of the Companies Act, 1956 a Public Limited Company for the purpose of convening an EGM is required to obtain the consent of the shareholders holding not less than 95 per cent of such paid up share capital which gives them the right to vote at the meeting.
The form in which the consent of the members is to be obtained is Form 22A of the Companies (Central Government) General Rules and Forms, 1956
In my opinion, the EGM can be convened the same day the consent as aforesaid is obtained from the members.
19 February 2011
A general meeting of the company shall be called by giving not less than 21 days clear notice in writing. However, a general meeting may be called after giving shorter notice, if consent is accorded there to - (a) in the case of an annual general meeting by all the members entitled to vote thereat; and (b) in the case of any other meeting by members of the company: (i) holding,if the company has a share capital, not less than 95% of such part of the paid up share capital of the company as gives a right to vote at the meeting; or (ii) having, if the company has no share capital, not less than 95% of the total voting power exercisable at that meeting.
In case of failure to do as above, the company and every officer of the company who is in default shall be punishable with fine which may extend to Rs.5000 and where the contravention is a continuing one, with a further fine which may extend to Rs.500 for every day after the first during which the contravention continues.
21 February 2011
EGM can be called anytime after the Board approves calling of EGM, the very same day, same time by simply serving the EGM notice, subject to obtaining shorter notice consent of 95% of the shareholders as aforesaid.
CAclubindia
