Section 173(1) of the Companies Act, 1956 talks about the businesses i.e. the matters, which constitutes the Ordinary Businesses to be discussed and decided in the Annual General meeting of a Company. These businesses are to be compulsorily dealt in every Annual General Meeting of a Company, and therefore these are called as ‘Ordinary Business’.
The Ordinary Businesses as prescribed in the Section 173(1) of the Companies Act, 1956 are as follows:
(i) the consideration of the accounts, balance sheet and the reports of the Board of directors and auditors,
(ii) the declaration of a dividend, if any,
(iii) the appointment of directors in the place of those retiring, and
(iv) the appointment of and the fixing of the remuneration of, the auditors ;
All business/matters to be transacted at the annual general meeting or even any General meeting of the members of a Company, except the above four businesses, shall be deemed ‘Special Business’.