Ordinary Business transacted at an Annual General Meeting

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’.