Statutory Meeting Definition &
Meaning : It is not a defined term. But
as provided under section 165 of the companies act 1956, it is a
mandatory general meeting of the members of a company which is required
to be hold within certain prescribed period of time.
Applicability to certain Companies : Every company limited by shares, and every company
limited by guarantee and having a share capital. Private Companies are not
required to hold any such meeting.
Time Limit for holding Statutory Meeting:All the companies, those are required to hold
Statutory Meeting as shown above, shall hold its Statutory Meeting within a
period of not less than 1 month nor more than 6 months from the date at which
the company is entitled to commence business.
Frequency of holding statutory meeting : Statutory meeting is held once in
a lifetime of the company.
Statutory Report to be sent to Shareholders : The Board of directors shall, at least 21 days
before the day on which the statutory meeting is scheduled to be held, forward
a report called as "the statutory report" to every member of the
company. This report is required to be submitted with Registrar of Companies by
way of filing e-form 22 available at www.mca.gov.in/MCA21.
the statutory meeting : Generally,
the agenda of a statutory meeting is only to consider
and adopt the Statutory Report, but the members of the company present
at the meeting shall be at liberty to discuss any matter relating to the
formation of the company or arising out of the statutory report, whether
previous notice has been given or not ; but no resolution may be passed of
which notice has not been given in accordance with the provisions of this Act.
Adjournment of statutory meeting : The meeting may adjourn from time to
time, and at any adjourned meeting, any resolution of which notice has been
given in accordance with the provisions of this Act, whether before or after
the former meeting, may be passed; and the adjourned meeting shall have the
same powers as an original meeting.
Consequences of not holding statutory
meeting : If default is made, every
director or other officer of the company who is in default shall be punishable
with fine which may extend to five thousand rupees.
Under sub-section (b) of the section 433, a company may be wound up by the Court, if default is made in delivering the statutory report to the Registrar or in holding the statutory meeting.
Provisions under the new companies act
There is no provision for statutory meeting under companies act 2013.