12.11.2 (statutory Meeting )

Some of the most important legal provisions regarding the statutory meeting are:

            (i)  It is  required to be held only by a public company having a share capital. A private company or a public company registered without share capital is under no obligation to hold such a meeting.

            (ii)  It must be held within a period of not less than one month and not more than six months from the date at which the company is entitled to commence business.

            (iii)  At least 21 days before the day of meeting, a notice of the meeting is to be sent to every member stating it to be a Statutory Meeting.

            (iv)  The Board of Directors should also get a report, called the Statutory Report, sent to each member along with the notice of the meeting. Lf the statutory report is forwarded later, it shall be deemed to have been duly forwarded if it is so agreed to by all the members entitled to attend and vote at the meeting. A copy of the Statutory Report should also be  sent to the Registrar after the same is sent to the members.

The statutory Report contains (a) the total number of shares allotted - fully paid- up and partly paid-up; allotted for cash and for consideration other than cash; (b) the total cash received by the company in respect of all allotments; (c) an abstract of receipts and payments up to a date within seven days of the date of the Report and the balance of cash in hand; (d) any commission or discount paid on the issue of shares or debentures; (e) the names, addresses and occupations of directors, auditors, managers and the secretary of the company; (f) the extent to which any underwriting contract has not been carried out; (g) the arrears due on calls from every director; (h) the particulars of any commission or brokerage paid to any director or manager on the issue of shares and debentures.

The Statutory Report is required to be certified as correct by at least two directors, one of whom shall be the managing director, where there is one. Also, the auditors of the company shall certify that part of the Statutory Report which relates to the shares allotted, each received thereon and the receipts and payments and the balance of cash in hand.

            (v)  The members present at the meeting may discuss any matter relating to the formation of the company or arising out of the statutory report without previous notice having been given.

            (vi)  The meeting may adjourn and the adjourned meeting has the same powers as the original meeting. The adjourned meeting, therefore, may do anything which could have been done by the original meeting.

            (vii)  lf default is made in complying with the provisions of s.165, the following consequences may follow: (a) Every director or other officer of the company who is in default shall be punishable with fine upto Rs 5,000; (b) The Registrar or a contributory may apply to the Court for the winding up of the company [s.439]. However, the Court may, instead of passing an order for winding up, give directions for the holding of the meeting or filing of the Statutory Report.

            (viii)  It should be remembered that this meeting is required to be held only once in the life time of a public company, having a share .capital.