Ordinary Business transacted at an Annual General Meeting

Section 102(2) of the Companies Act, 2013 talks about the businesses i.e. the matters/items/agendas, 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 102(2) of the Companies Act, 1956 are as follows:
 
(i) the consideration of financial statements and the reports of the Board
of Directors and auditors;
(ii) the declaration of any dividend;
(iii) the appointment of directors in place of those retiring;
(iv) the appointment of, and the fixing of the remuneration of, the auditors;

Any businesses except the above 4(four) businesses shall be deemed to be ‘Special Businesses’.

Notes:
  • The corresponding provisions for Section 102(2) of the Companies Act, 2013 were earlier prescribed under Section 173(1) of Companies Act 1956.