7.2 Types of company meetings held to execute various functions of company meetings

7.2 TYPES OF COMPANY MEETINGS HELD TO EXECUTE VARIOUS FUNCTIONS OF COMPANY MEETINGS

Annual General Meeting (AGM)

The AGM is a mandatory meeting held by public and private companies once a year.

Functions:

1. Presentation and approval of annual financial statements and reports.
2. Election or reappointment of directors.
3. Appointment of auditors.
4. Declaration of dividends.
5. Discussion of company performance and future plans.
6. Shareholders’ question and answer session.
7. Extraordinary General Meeting (EGM)

The EGM is held outside the regular AGM to discuss and decide on specific matters that require immediate attention.

Functions:

1. Approving special resolutions for significant changes to the company’s constitution.
2. Approving major corporate actions like mergers, acquisitions, or disposals.
3. Issuing new shares or altering share capital structure.
4. Authorizing the company to borrow or provide guarantees.
5. Resolving disputes or making decisions on critical matters.

3. Class meetings

Class meetings are held for specific classes of shareholders, particularly when their rights or interests are affected.

Functions:

1. Voting on matters that specifically impact a particular class of shares.
2. Discussing and deciding on changes to class rights or preferences.
3. Approving resolutions related to class-specific issues like dividend preferences or liquidation preferences.
4. Board meetings

Board meetings are held by the company’s board of directors.

Functions:

1. Strategic decision-making and policy formulation.
2. Reviewing financial performance, budgets, and management reports.
3. Approving major transactions and contracts.
4. Discussing and resolving operational issues.
5. Monitoring compliance with legal and regulatory requirements.
6. Evaluating and approving business plans and strategies.

5. Committee meetings

Committee meetings are held by specific committees formed by the board, such as audit committees, remuneration committees, or nomination committees.

Functions:

1. Conducting detailed reviews and assessments in specific areas of responsibility.
2. Making recommendations and providing guidance to the board.
3. Monitoring compliance and governance in their respective domains.
4. Undertaking specialized tasks assigned by the board.Creditors’ meetingsCreditors’ meetings are held in specific circumstances, typically during insolvency or restructuring processes.Functions:
   1. Discussing and voting on matters related to the company’s financial restructuring or insolvency proceedings.
   2. Reviewing proposals for debt repayment or debt restructuring.
   3. Appointing or approving the appointment of administrators or liquidators.

   Addressing the interests and concerns of creditors in the insolvency process