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.
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.
Matters/Agendas/Resolution at 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.