SECRETARIAL STANDARD
ON
GENERAL MEETINGS
The following is the text of the Secretarial Standard-2 (SS-2), issued by the Council
of the Institute of Company Secretaries of India, on “General Meetings”.
This being one of the Secretarial Standards with respect to General Meetings,
adherence by a company to this Secretarial Standard is mandatory as per the
provisions of the Companies Act, 2013.
(In this Secretarial Standard, the Standard portions have been set in bold
type. These should be read in the context of the background material
which has been set in normal type, and in the context of the ‘Preface to
the
Secretarial
Standards’.
Both
the
Standard
portions
and
the
background material have equal authority).
INTRODUCTION
This Standard seeks to prescribe a set of principles for the convening and conduct of
General Meetings and matters related thereto.
The decision-making powers of a company are vested in its Members and the Board
of Directors (the Board).
Such powers are exercisable through Meetings of the
Members and the Board respectively. Except where the law expressly provides that
certain powers of a company are to be exercised only by the company in General
Meeting, the Board is entitled to exercise all the powers of the company.
Every company other than a One Person Company, is required to hold every year, a
Meeting of its Members called the Annual General Meeting and may also hold any
other General Meeting, as and when required or on the requisition of Members. The
business to be transacted at an Annual General Meeting may consist of items of
ordinary business as well as special business. The items of ordinary business
specifically required to be transacted at an Annual General Meeting should not be
transacted at any other General Meeting.
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If a company defaults in holding its Annual General Meeting in any year, any
Member of the company has a statutory right to approach the prescribed authority
to call or direct calling of the Annual General Meeting of the company.
A company may also hold a Meeting of its Members, or class of Members or
debenture-holders or creditors under the directions of the Court or the National
Company Law Tribunal (NCLT) or any other prescribed authority, and any such
Meeting shall be governed by the rules, regulations and directions prescribed for the
conduct of such Meeting.
SCOPE
The principles enunciated in this Standard for General Meetings may also be
applicable to class meetings of Members, debenture-holders and creditors. These
principles may, not be applicable to any meeting convened on the directions of the
Court or the NCLT or any other prescribed authority unless the directions themselves
so prescribe.
This Standard does not deal with passing of resolutions by postal ballot.
DEFINITIONS
The following terms are used in this Standard with the meaning specified:
“Act” means the Companies Act, 2013 (Act No. 18 of 2013) or any previous
enactment thereof, or any statutory modification thereto or re-enactment thereof
and includes any Rules and Regulations framed thereunder.
“Agency” means agency appointed by the company for providing and supervising
electronic platform for voting.
“Articles” means the Articles of Association of a company, as originally framed or as
altered from time to time, including, where they apply, the Regulations contained in
the Tables in Schedule I to the Act.”
”Chairperson” means the Chairperson of the Board or the Chairperson appointed or
elected for a Meeting.
2
“Electronic
Mode”
means
electronic
medium
of
communication
including
videoconferencing or other audio-visual means, e-voting, e-mail, or other electronic
communication facility and/or record-keeping, as may be applicable.
“Interested Director” means a Director who is in any way, whether by himself or
through any of his relatives or firm, body corporate or other association of
individuals in which he or any of his relatives is a partner, director or a member,
interested in a contract or arrangement, or proposed contract or arrangement,
entered into or to be entered into by or on behalf of a company.1
”Meeting” or “General Meeting” or “Annual General Meeting” or “Extra-Ordinary
General Meeting” means a duly convened Meeting of Members.
“Minutes” or “Minutes Book” means Minutes or Minutes Book maintained in physical
or in electronic form.
“National Holiday” means and includes a day declared as National Holiday by the
Central Government.
“Non-interested Director” means a Director who is not an Interested Director.
”Ordinary Business” means business to be transacted at an Annual General Meeting
relating to the (i) consideration of financial statements, consolidated financial
statements and the reports of the Board of Directors and Auditors; (ii) declaration of
any dividend; (iii) appointment of Directors in the place of those retiring; and (iv)
appointment or ratification and fixing of remuneration of the Auditors.
”Ordinary Resolution” means a Resolution at a General Meeting of which the Notice
required under the Act has been duly given and the votes cast (whether on a show
of hands or electronically or on a poll) in favour of the Resolution (including the
casting vote, if any, of the Chairperson) exceed the votes, if any, cast against the
Resolution by Members entitled to vote thereon either in person or, where proxies
are allowed, by Proxy or by postal ballot.
1
Definition under Section 2(49) of the Companies Act, 2013
3
”Proxy” means an instrument in writing signed by a Member, authorizing another
person, whether a Member or not, to attend and vote on his behalf at a Meeting and
also means the person so appointed by a Member.
”Quorum” means the minimum number of Members whose presence is necessary for
holding of a Meeting.
”Special Business” means business other than the Ordinary Business to be
transacted at an Annual General Meeting and all business to be transacted at any
other General Meeting.
”Special Resolution” means a Resolution at a General Meeting in respect of which (a)
the intention to propose the Resolution as a Special Resolution has been duly
specified in the Notice calling the Meeting or intimation of the Resolution has been
given to the Members; (b) the Notice required under the Act has been duly given of
the Meeting; and (c) the votes cast (whether on a show of hands or electronically or
on a poll) in favour of the Resolution (including the casting vote, if any, of the
Chairperson) are not less than three times the number of votes, if any, cast against
the Resolution by Members entitled to vote thereon either in person or, where
proxies are allowed, by Proxy or by postal ballot.
“Voting right” means the right of a Member to vote on any matter at a meeting of
members or by means of postal ballot;
Words and expressions used and not defined herein shall have the meaning
respectively assigned to them under the Act.
SECRETARIAL STANDARDS
1.
Convening a Meeting
1.1
Authority
1.1.1 A General Meeting should be convened on the authority of the Board.
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The Board of its own accord or on the requisition of Members who, as on the date of
the receipt of the requisition, hold not less than one-tenth of the paid-up share
capital carrying voting rights or voting power of the company, should, convene or
authorize convening of an Extra-ordinary General Meeting of the company.
If, on a requisition having been made in this behalf, the Board, within twenty-one
days from the date of receipt of a valid requisition, fails to convene a Meeting on any
day within forty-five days from the date of receipt of such requisition, the
requisitionists may themselves call the Meeting within 3 months from the date of
requisition, in the manner prescribed under the Act.
If the requisition pertains to an item which is required to be passed by means of a
postal ballot under the Act or any other law, the Board should proceed to conduct
the voting by postal ballot, within forty-five days from the date of receipt of such
requisition.
1.2
Notice
1.2.1 Notice in writing of every Meeting should be given to every Member
of the company. Such Notice should also be given to the Directors and
Auditors of the company, to the Secretarial Auditor, to Debenture
Trustees, if any, and, wherever applicable or so required, to other
specified recipients.
Notice should be given to all persons entitled to receive such Notice, at the address
provided by them in India. In the case of joint-shareholders, the Notice should be
given to the person whose name appears first in the Register of Members or in the
records of the depository, as the case may be.
On receipt of intimation of death of a Member, the Notice of a Meeting should be
sent to the surviving first joint-holder or to the nominee of the sole shareholder or to
the person entitled to the share of the deceased Member. In case of insolvency of a
Member, the Notice should be sent to the assignees of the insolvent or to the person
entitled to the share(s) of the insolvent Member.
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1.2.2 Notice should be given in writing by hand or by post or by courier or
by facsimile or by e-mail or by any other Electronic Mode.
If the Notice and accompanying documents are circulated by hand or by post or by
courier, it should be sent to the Members at their addresses in India.
In case the facility of voting by Electronic Mode is being made available, the Notice
of such Meeting should be sent either by registered post or speed post or by courier
or by facsimile or by e-mail or by any other Electronic Mode.
In case the Notice and accompanying documents are given by Electronic Mode, it
should be sent to the Members’ e-mail addresses, registered with the company or
provided by the depository, in the manner prescribed under the Act. While doing so,
the company should ensure that it uses a system which provides confirmation of the
total number of recipients e-mailed. A record of each recipient to whom the notice
has been sent, copy of such record, any notices of any failed transmissions and
subsequent re-sending should be retained by the company as ‘‘proof of sending’’. An
advance opportunity should be provided to all the Members atleast once in a
financial year, to register their e-mail addresses and changes therein with the
company or depository.
In case of the Directors, Auditors, Secretarial Auditors and others, if any, the Notice
and accompanying documents should be sent at the e-mail addresses provided by
them to the company, if being sent by Electronic Mode.
1.2.3 The Notice should be hosted on the website, if any, of the company
and other websites prescribed under the Act.
In case of listed companies, an abridged version of the Notice, listing the items of
business and the day, date, time and full address of the venue of the Meeting, may
be published in a leading national newspaper.
1.2.4 The Notice should specify the day, date, time and full address of the
venue of the Meeting.
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Meetings should be called during business hours i.e. between 9 a.m. and 6 p.m., on
a day that is not a National Holiday. A Meeting on Requisition of Members should be
convened only on a working day.
Annual General Meetings should be held either at the registered office of the
company or at some other place within the city, town or village in which the
registered office of the company is situated, whereas other General Meetings may be
held at any place within India. A Meeting on Requisition of Members should be held
either at the registered office of the company or at some other place within the city
or town in which the registered office of the company is situated
If the venue of the Meeting is a place which cannot be easily located, a site map of
the venue should be sent with the Notice.
The Notice of a company which has a share capital or the Articles of which provide
for voting at a Meeting by Proxy, should prominently contain a statement that a
Member entitled to attend and vote is entitled to appoint a Proxy, or where that is
allowed, one or more proxies, to attend and vote instead of himself and that a Proxy
need not be a Member. In case of companies where Proxy should be a Member only,
a statement to that effect should appear in the Notice prominently. A Proxy should
be a Member in case of companies registered under the Act with the object of
promotion of commerce, arts, science, sports, education, research, social welfare,
religion, charity, protection of environment or any such other object, which intends
to apply its profits, if any, or other income in promoting its objects and also prohibits
the payment of any dividend to its Members.
1.2.5 In case the facility of voting by Electronic Mode is being made
available, the Notice should inform the Members about availability of such
facility and provide necessary information thereof to enable them to
access such facility.
The Notice should also clearly specify the date and time of commencement and end
of voting by Electronic Mode and contain a statement that voting shall not be
allowed beyond the said date and time. Notice should also contain contact details of
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the official responsible to address the grievances connected with the voting by
Electronic Mode.
The Notice should also specify the mode of declaration of the results of the voting by
Electronic Mode.
An advertisement containing prescribed details should be published, not less than
five days before the date of beginning of the voting period, atleast once in a
vernacular newspaper in the principal vernacular language of the district in which
the registered office of the company is situated and atleast once in English language
in an English newspaper, both having a wide circulation in that district.
Every listed company or a company having not less than one thousand Members
should provide the facility of voting by Electronic Mode to its Members.
1.2.6 The Notice should clearly specify the nature of the Meeting and the
business to be transacted thereat. In respect of items of Special Business,
each such item should be in the form of a Resolution and should be
accompanied by an explanatory statement which should set out all such
facts as would enable a Member to understand the meaning, scope and
implications of the item of business and to take a decision thereon. In
respect of items of Ordinary Business, Resolutions are not required to be
stated in the Notice except where the Auditors or Directors to be
appointed are other than the retiring Auditors or Directors, as the case
may be.
The nature of the concern or interest (financial or otherwise), if any, of the following
persons, in any item of business or in a proposed Resolution, should be disclosed in
the explanatory statement:
•
Promoters
•
Directors and Managers,
•
Other Key Managerial Personnel and
•
Relatives of the persons mentioned above.
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In case any item of Special Business to be transacted at a Meeting of the company
relates to or affects any other company, the extent of shareholding interest in that
other company of every Promoter, Director, Manager, and of every other Key
Managerial Personnel of the first mentioned company should, if the extent of such
shareholding is not less than two percent of the paid-up share capital of that
company, also be stated in the explanatory statement.
Where reference is made to any document, contract, agreement or the
Memorandum of Association and Articles, the relevant explanatory statement should
state that such documents are available for inspection and such documents should
be so made available for inspection in physical or in electronic form during business
hours at the Registered Office of the company and copies thereof should also be
made available for inspection in physical or electronic form as prescribed at the
head/corporate office of the company, if such office is situated elsewhere, and also
at the Meeting.
In all cases relating to the appointment or re-appointment of Directors/Manager or
variation of the terms of remuneration, details of each such Director/Manager,
including age, qualifications, experience, terms and conditions of appointment/reappointment including details of remuneration sought to be paid and the
remuneration last drawn by such person, if applicable, date of first appointment on
the Board, shareholding in the company, relationship with other Directors, Manager
and other Key Managerial Personnel of the company, the number of Meetings of the
Board
attended
during
the
year
and
other
Directorships,
membership/
chairpersonship of Committees of other Boards should be given in the explanatory
statement. In case of re-appointment of Independent Directors, performance
evaluation report of such Director or summary thereof should be included in the
explanatory statement.
No explanatory statement is required to be annexed in case of a Members’ Meeting
by requisition.
In case a valid special notice has been received from Member(s), the company
should give notice of the resolution to all its Members at least seven days before the
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Meeting, exclusive of the day of dispatch of notice and day of the Meeting, in the
same manner as prescribed in this Standard.
Where this is not practicable, the notice should be published a vernacular newspaper
in the principal vernacular language of the district in which the registered office of
the company is situated, and in an English newspaper in English language, both
having a wide circulation in that district, at least seven days before the Meeting,
exclusive of the day of publication of the notice and day of the Meeting. Such notice
should also be hosted on the website, if any, of the company. In case of listed
companies, the notice may also be published in a leading national newspaper.
1.2.7 Notice and accompanying documents should be sent at least twentyone days in advance of the Meeting if sent by Electronic Mode and at least
twenty-five days in advance of the Meeting if sent by any other mode.
1.2.8 Notice may be given at a shorter period of time if consent in writing
is given thereto, by physical or Electronic Mode, by not less than ninetyfive per cent of the Members entitled to vote at such Meeting.
Consent for shorter Notice should be obtained before the Meeting.
There is no provision for sending the copies of Financial Statements, Directors’
Report and Auditors’ Report at a shorter period of time.
1.2.9 No business should be transacted at a Meeting if Notice in
accordance with this Standard has not been given.
Any accidental omission to give Notice to, or the non-receipt of such Notice by any
Member or other person who is entitled to such Notice for any Meeting shall not
invalidate the proceedings of the Meeting.
1.2.10 No items of business other than those specified in the Notice
should be taken up for consideration at the Meeting, except those
specifically permitted under law.
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No Resolution shall be valid if it is passed in respect of an item of business not
contained in the Notice convening the Meeting or an item specifically permitted
under law.
Items specifically permitted under law which may be taken up for consideration at
the Meeting are:
•
Proposed Resolutions, the notice of which has been given by Members,
•
Resolutions requiring Special Notice, if received with the intention to move
•
Candidature for directorship, if any such notice has been received.
Where Special Notice is required of any Resolution and Notice of the intention to
move such Resolution is received by the company from the prescribed number of
Members, such item of business should be placed for consideration at the Meeting
after giving Notice of the Resolution to Members in the manner specified.
Any amendment to the Notice, including the addition of any item of business, can be
made provided the notice of amendment is sent to all persons entitled to receive
the Notice of the Meeting and is sent within the time limit prescribed for giving of
the original Notice.
1.2.11 The Notice should be accompanied by an attendance slip and a
Proxy form with clear instructions for filling, stamping, signing and/or
depositing the Proxy form.
1.2.12 A Meeting convened upon due Notice should not be postponed or
cancelled.
If, for reasons beyond the control of the Board, a Meeting cannot be held on the
date originally fixed, the Board may reconvene the Meeting after giving not less than
seven days intimation to the Members. The intimation should also be published in a
vernacular newspaper in the principal vernacular language of the district in which
the registered office of the company is situated, and in an English newspaper in
English language, both having a wide circulation in that district. In case of listed
companies, the intimation may also be published in a leading national newspaper.
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2.
Frequency of Meetings
2.1
Annual General Meeting
Every company other than a One Person Company should, in each year,
hold a General Meeting called the Annual General Meeting.
Every company should hold its first Annual General Meeting within nine months from
the date of closing of the first financial year of the company and thereafter in each
year within six months of the close of the financial year, with an interval of not more
than fifteen months between two successive Annual General Meetings.
The
aforesaid period of six months or interval of fifteen months may be extended by a
period not exceeding three months with the prior approval of the Registrar of
Companies.
If a company holds its first Annual General Meeting, as aforesaid, it shall not be
necessary for the company to hold any Annual General Meeting in the year of its
incorporation.
2.2
Extra-Ordinary General Meeting
Items of business of an urgent nature which need to be transacted before the next
Annual General Meeting may be considered at an Extra-Ordinary General Meeting or
by means of a postal ballot.
3. Quorum
3.1
Quorum should be present throughout the Meeting.
Unless the Articles provide for a larger number, the Quorum for a General Meeting
should be:
(a) in case of a public company,—
(i) five Members personally present if the number of Members as on the date of
Meeting is not more than one thousand;
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(ii) fifteen Members personally present if the number of Members as on the date of
Meeting is more than one thousand but up to five thousand;
(iii) thirty Members personally present if the number of Members as on the date of
the Meeting exceeds five thousand;
(b) in the case of a private company, two Members personally present .
Where the Quorum provided in the Articles is higher than two or five or fifteen or
thirty, as the case may be, the Quorum should conform to such higher requirements.
Members need to be personally present at a Meeting to constitute the Quorum.
An authorised representative is treated as a person personally present. One person
can be an authorised representative of more than one body corporate. In such a
case, he is treated as more than one Member for the Quorum. However, to
constitute a meeting, at least two individuals should be present in person. For eg:In case of a public company with a
Quorum requirement of five Members, an
authorised representative of five bodies corporate cannot form a Quorum by himself
but can do so alongwith another Member personally present.
Proxies are to be excluded for determining the Quorum. However, a duly authorized
representative of a body corporate or the representative of the President of India or
the Governor of a State is deemed to be a Member personally present and enjoys all
the rights of a Member present in person.
Members voting by Electronic Mode should not be counted for Quorum.
4.
Presence of Directors and Auditors
4.1
Directors
4.1.1 Directors of the company should attend all Meetings of the
company, particularly the Annual General Meeting, and should be seated
with the Chairperson.
If any Director is unable to attend the Meeting the Chairperson should explain such
absence at the Meeting.
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The Chairperson of the Audit Committee, Nomination and Remuneration Committee
and the Stakeholders Relationship Committee, or any other member of such
Committees authorised by the Chairperson of the respective Committees, should
attend all General Meetings of the company.
4.2
Auditors
The Auditors of the company unless otherwise exempted, should attend,
either by themselves or through their authorised representative, who shall
also be qualified to be an Auditor, all General Meetings of the company
and shall have the right to be heard at such Meetings on that part of the
business which concerns them as Auditors.
4.3
Secretarial Auditor
The Secretarial Auditor should, either by himself or through his authorised
representative, who shall also be qualified to be a Secretarial Auditor
attend the Annual General Meeting.
5.
Chairperson
5.1
Appointment
5.1.1 Where the Articles so provide, the Chairperson of the Board should
take the chair and conduct the Meeting. If there is no Chairperson either
of the Board or appointed for the purpose or if he is not present within
fifteen minutes after the time appointed for holding the Meeting, or if he is
unwilling to act as Chairperson of the Meeting, the Directors present
should elect one of themselves to be the Chairperson of the Meeting. If no
Director is willing to take the chair or if no Director is present within
fifteen minutes after the time appointed for holding the Meeting, the
Members present should elect, on a show of hands, one of themselves to
be the Chairperson of the Meeting.
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If a poll is demanded on the election of the Chairperson, it should be taken forthwith
in accordance with the provisions of the Act and the Chairperson elected on a show
of hands should continue to be the Chairperson of the meeting until some other
person is elected as Chairperson as a result of the poll, and such other person
should be the Chairperson for the rest of the Meeting.
The Chairperson should ensure that the Meeting is duly constituted in accordance
with the Act and the Articles or any other applicable laws, before it proceeds to
transact business. The Chairperson should then conduct the Meeting in a fair and
impartial manner and ensure that only such business as has been set out in the
Notice is transacted.
5.2 The Chairperson may explain the objective and implications of the
Resolutions before they are put to vote.
The Chairperson should provide a fair opportunity to Members who are entitled to
vote to seek clarifications and/or offer comments related to any item of business and
address the same, as may be warranted.
5.3 The Chairperson should not propose any Resolution in which he is
deemed to be concerned or interested nor should he participate in the
discussion or vote on any such Resolution.
If the Chairperson is interested in any item of business, he should entrust the
conduct of the proceedings in respect of such item to the Vice-Chairperson, if there
is one, or to any Non-interested Director or to a Member and resume the Chair after
that item of business has been transacted. A person, who so takes the Chair, can
exercise his casting vote in the event that a vote on such item of business results in
a tie, if the Articles provide for casting vote by the Chairperson.
6.
Voting
6.1
Proposing a Resolution
6.1.1 Every Resolution should be proposed by a Member and seconded by
another Member entitled to vote thereon.
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Every Member holding equity shares and, in certain events as specified in the Act,
every Member holding preference shares, shall be entitled to vote on a Resolution.
6.1.2 A Director, who is also a Member, should not propose or second any
Resolution in which he is deemed to be concerned or interested nor should
he participate in the discussion on any such Resolution.
6.2
On Show of Hands
Every Resolution should, in the first instance, be put to vote on a show of
hands.
Every Member entitled to vote on a Resolution and present in person shall, on a
show of hands, have only one vote irrespective of the number of shares held by him.
A Proxy cannot vote on a show of hands. To ensure this, the company may have a
separate seating arrangement for Proxies.
Resolutions requiring voting by poll should not be put to vote by show of hands.
6.3
By Poll
6.3.1 Before or on the declaration of the result of the voting on any
resolution on show of hands, a poll may be ordered to be taken by the
Chairperson of the meeting on his own motion, and shall be ordered to be
taken by him on a demand made in that behalf by such Members as
prescribed under the Act.
While a Proxy cannot speak at the Meeting, he has the right to demand or join in the
demand for a poll.
6.3.2 A Member present in person or by Proxy shall, on a poll, have
votes in proportion to his share of the paid up equity capital of the
company, subject to differential rights as to voting, if any, attached to
certain shares as stipulated in the Articles or by the terms of issue of such
shares.
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6.4
By Electronic Mode
6.4.1 Every Member of the company prescribed under the Act and not
present physically may exercise his right to vote by the Electronic Mode.
Every listed company or a company having not less than one thousand Members
should provide the facility of voting by Electronic Mode to its Members. Every such
company should have secured electronic system to capture accurate electronic
voting processes.
6.4.2 Voting by Electronic Mode should be conducted by the company in
the manner prescribed under the Act and completed three days prior to
the date of the General Meeting.
Once the vote on a resolution is cast by the Member, he should not be allowed to
change it subsequently.
6.5
Casting Vote
If the Articles so provide, the Chairperson shall have a casting vote.
7. Proxies
7.1
Notice of Right to Appoint
Every Notice calling a Meeting of a company which has a share capital or
the Articles of which provide for voting at a Meeting by Proxy, should
prominently contain a statement that a Member entitled to attend and
vote is entitled to appoint a Proxy, or where that is allowed, one or more
proxies, to attend and vote instead of himself and that a Proxy need not
be a Member. In case of companies where Proxy should be a Member only,
a statement to that effect should appear in the Notice prominently.
A Proxy should be a Member in case of companies registered under the Act with the
object of promotion of commerce, arts, science, sports, education, research, social
welfare, religion, charity, protection of environment or any such other object, which
17
intends to apply its profits, if any, or other income in promoting its objects and also
prohibits the payment of any dividend to its Members..
A Proxy should act on behalf of a number of Members not exceeding fifty and
holding in the aggregate not more than ten percent of the total share capital of the
company carrying voting rights.
However, if a Proxy is appointed for more than fifty Members, he should choose any
fifty Members and confirm the same to the company before the commencement of
specified period for inspection. In case, the Proxy fails to do so, the company should
consider only the first fifty proxies in date as valid.
7.2
Form of Proxy
7.2.1 An instrument appointing a Proxy should be either in the Form
specified in the Articles or in the Form set out in the Act.
The instrument of Proxy should be signed by the appointer or his attorney duly
authorised in writing, or if the appointer is a body corporate, be under its seal or be
signed by an officer or an attorney duly authorised by it.
7.2.2 An instrument of Proxy duly filled, stamped and signed, is valid only
for the Meeting to which it relates including any adjournment thereof.
7.3
Stamping of Proxies
An instrument of Proxy is valid only if it is properly stamped. Unstamped
or inadequately stamped Proxies or Proxies upon which the stamps have
not been cancelled are invalid.
7.4
Execution of Proxies
7.4.1 The Proxy-holder should prove his identity at the time of attending
the meeting.
7.4.2 An authorised representative of a body corporate or of the President
of India or of the Governor of a State, holding shares in a company, may
appoint a Proxy under his signature.
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7.5
Proxies in Blank and Incomplete Proxies
7.5.1 A proxy form which does not state the name of the Proxy should not
be considered valid.
7.5.2 Undated Proxy should not be considered valid.
7.5.3 If a company receives multiple Proxies for the same holdings of a
Member, the proxy which is dated last should be considered valid; if they
are not dated or bear the same date without specific mention of time, all
such multiple Proxies should be treated as invalid.
7.6 Deposit of Proxies
7.6.1 Proxies should be deposited with the company either in person or
through post not later than forty-eight hours before the commencement
of the Meeting in relation to which they are deposited and a Proxy should
be accepted even on a holiday if the last date by which it could be
accepted is a holiday.
Any provision in the Articles of a company which specifies or requires a longer period
for deposit of proxy than forty-eight hours before a meeting of the company shall
have effect as if a period of forty-eight hours had been specified in or required for
such deposit.
Proxies may be accepted at a shorter period, being not less than twenty-four hours
before the commencement of the Meeting, if the Articles so provide.
7.6.2 A Member who has not appointed a Proxy to attend and vote on his
behalf at a Meeting may appoint a Proxy for any adjourned Meeting, not
later than forty-eight hours before the time of such adjourned Meeting.
7.7
Revocation of Proxies
7.7.1 If a Proxy had been appointed for the original Meeting and such
Meeting is adjourned, any Proxy given for the adjourned Meeting revokes
the Proxy given for the original Meeting.
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7.7.2 A Proxy later in date revokes any Proxy/Proxies dated prior to such
Proxy.
7.7.3 A Proxy is valid until written notice of revocation has been received
by the company before the commencement of the Meeting or adjourned
Meeting, as the case may be.
An undated notice of revocation of Proxy should not be accepted. A notice of
revocation should be signed by the same Member, in the case of joint membership,
who had signed the Proxy.
A Proxy need not be informed of the revocation of the Proxy issued by the Member.
7.7.4 When a Member appoints a Proxy and both the Member and Proxy
attend the Meeting, the Proxy stands automatically revoked.
7.8
Inspection of Proxies
7.8.1 Requisitions, if any, for inspection of Proxies should be received in
writing from a Member at least three days before the commencement of
the Meeting.
7.8.2 Proxies should be made available for inspection during the period
beginning twenty-four hours before the time fixed for the commencement
of the Meeting and ending with the conclusion of the Meeting.
Inspection should be allowed during the business hours of the company, subject to
reasonable restrictions.
7.8.3 A fresh requisition, conforming to the above requirements, should
be given for inspection of Proxies in case the original Meeting is
adjourned.
7.9
Record of Proxies
7.9.1 All
Proxies
received
by
the
company
should
be
recorded
chronologically in a register kept for that purpose.
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7.9.2 In case any Proxy entered in the register is rejected, the reasons
therefor should be entered in the remarks column.
8. Conduct of Voting by Electronic Mode
8.1 The Board should appoint an Agency to provide and supervise
electronic platform for voting by Electronic mode and ascertain their
willingness to act as such by obtaining their consent.
8.2 The Board should also appoint one scrutinizer, who may be a
Practising
Company
Secretary,
Practising
Chartered
Accountant,
Practising Cost Accountant, or an advocate and any other person of repute
who, in the opinion of the Board can scrutinize the e-voting process in a
fair and transparent manner. He should however not be an officer or
employee of the company.
The Scrutinizer should submit his report on voting by Electronic mode with requisite
details to the Chairperson on or before the commencement of the Meeting.
8.3 Based on the scrutinizers’ report and voting at the Meeting or by poll,
as the case may be, the Chairperson or any other person authorised by the
Chairperson in writing for this purpose should announce the final results
as to whether the Resolution has been carried or not, at the Meeting or
while declaring the results of the poll, as the case may be.
8.4 The final result of the voting as to whether the Resolution has been
carried or not along with the scrutinizer’s report should be placed on the
website of the company and website of the Agency within two days of the
relevant General Meeting.
In the case of listed companies, the same
should also be published in a leading national newspaper.
The Resolution, if passed by requisite majority, shall be deemed to have been
passed on the date of the relevant General Meeting.
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9.
Conduct of Poll
9.1 When a poll is demanded on any Resolution, the Chairperson should
get the validity of the demand verified and, if the demand is valid, should
order the poll forthwith if it is demanded on the question of appointment
of the Chairperson or adjournment of the Meeting and, in any other case,
within forty-eight hours of the demand for poll.
9.2
In the case of a poll, which is not taken forthwith, the Chairperson
should announce the date, venue and time of taking the poll to enable
Members to have adequate and convenient opportunity to exercise their
vote.
The Chairperson should also announce that any Member who so
desires may be present at the time of counting of votes.
If the date, venue and time of taking the poll cannot be announced at the meeting,
the Chairperson should inform the Members, the modes and the time of such
communication, which should in any case be within 24 hours of the Meeting.
A Member who did not attend the Meeting can participate and vote in the poll.
9.3 Each Resolution on which a poll is demanded should be put to vote
separately.
One ballot paper may be used for two or more items for which poll has been
ordered.
9.4 The Chairperson should appoint such number of scrutinizers, as he
deems necessary, who may include a Practising Company Secretary,
Practising Chartered Accountant, Practising Cost Accountant, or an
Advocate or any other person of repute, to ensure that the scrutiny of the
votes cast on a poll is done in a fair and transparent manner. At least one
of the scrutinizers should be a Member who is present at the Meeting and
is not an officer or employee of the company.
Based on the scrutinizers’ report, the Chairperson should declare the result of the
poll, with details of the number of votes cast for and against the Resolution, invalid
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votes and the final result as to whether the Resolution has been carried or not. The
result should be announced by the Chairperson or any other person authorised by
the Chairperson in writing for this purpose.
The Chairperson of the Meeting shall have the power to regulate the manner in
which the poll shall be taken and should ensure that the poll is scrutinised in the
manner prescribed under the Act.9.5 The result of the poll should be displayed on the notice board of the
company at its Registered Office and its Corporate/Head Office, if such
office is situated elsewhere, and also placed on the website of the
company. In the case of listed companies, the result of the poll should
also be published in a leading national newspaper.
The result of the poll shall be deemed to be the decision of the Meeting on the
resolution on which the poll was taken.
10.
Withdrawal of Resolutions
Resolutions for items of business which are likely to affect the market
price of the securities of the company should not be withdrawn.
11.
Rescinding of Resolutions
A Resolution passed at a Meeting should not be rescinded other than by a
Resolution passed at a subsequent Meeting.
12.
Modifications to Resolutions
Modifications to any Resolution which do not change the purpose of the
Resolution materially may be proposed, seconded and adopted by the
requisite majority at the Meeting and, thereafter, the amended Resolution
should be duly proposed, seconded and put to vote.
No amendment to any proposed Resolution should be made if it in any way alters
the substance of the Resolution as set out in the Notice. Grammatical, clerical and
factual errors may be corrected or words translated into more formal language and,
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if the precise text of the Resolution was not included in the Notice, it may be
corrected into a formal Resolution, provided there is no departure from the
substance as stated in the Notice.
13.
Reading of Report/Certificate
13.1 The qualifications, observations or comments on the financial
statements or matters which have any adverse effect on the functioning of
the company, if any, mentioned in the Auditor’s Report should be read at
the Annual General Meeting and attention of the Members present should
be drawn to the explanations / comments given by the Board of Directors
in their report.
13.2 The qualifications, observations or comments on the financial
statements or matters which have any adverse effect on the functioning of
the company, if any, mentioned in the Secretarial Audit Report issued by
the Practising Company Secretary, should be read at the Annual General
Meeting and attention of Members present should be drawn to the
explanations / comments given by the Board of Directors in their report.
14.
Distribution of Gifts
No gifts, gift coupons, or cash in lieu of gifts should be distributed to
Members at or in connection with the Meeting.
15.
Adjournment of Meetings
15.1 A duly convened Meeting should not be adjourned arbitrarily by the
Chairperson. The
Chairperson
may adjourn
a
Meeting
with
the
consent of the Members and should adjourn a Meeting if so decided by
the Members.
Meetings may be adjourned for want of requisite Quorum. The Chairperson may
adjourn a Meeting in the event of disorder or other like causes, where it becomes
impossible to conduct the Meeting and complete its business.
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15.2 If a Meeting is adjourned sine-die or for a period of thirty days or
more, a Notice of the adjourned Meeting should be given in accordance
with the provisions contained hereinabove relating to Notice.
15.3 If a Meeting is adjourned for a period of less than thirty days, the
company should give not less than three days’ notice specifying the day,
date, time and venue of the Meeting, to the members either individually or
by publishing an advertisement in a vernacular newspaper in the principal
vernacular language of the district in which the registered office of the
company is situated, and in an English newspaper in English language,
both having a wide circulation in that district. In the case of listed
companies, notice thereof specifying the day, date, time and venue of the
Meeting should also be published simultaneously in a leading national
newspaper.
15.4 If
a
Meeting,
other
than
a
requisitioned Meeting, stands
adjourned for want of Quorum, the adjourned Meeting should be held on
the same day, in the next week at the same time and place or on such
other day and at such other time and place as may be determined by the
Board.
In case of such adjourned Meeting, Notice should be given in the same manner as
stated above.
If, at an adjourned Meeting, Quorum is not present within half an hour from the
time appointed, the Members present, being not less than two in number, will
constitute the Quorum.
15.5 If, within half an hour from the time appointed for holding a
requisitioned Meeting, a Quorum is not present, the Meeting shall stand
dissolved.
15.6 At an adjourned Meeting, only the unfinished business of the
original Meeting should be considered.
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Any Resolution passed at an adjourned Meeting would be deemed to have been
passed on the date of the adjourned Meeting and not on any earlier date.
16.
Minutes
16.1 Minutes should contain a summary of the proceedings of the
Meeting, recorded fairly and correctly and should be written in third
person and past tense.
16.2 The Minutes should be entered and signed within thirty days from
the conclusion of the Meeting.
In case a Meeting is adjourned, Minutes should be entered in respect of the original
Meeting as well as the adjourned Meeting within thirty days from the dates of the
respective Meetings.
The pages of the Minutes Book should be consecutively numbered. The Minutes
should be dated and signed by the Chairperson of that Meeting within a period of
thirty days or, in the event of death or inability of the Chairperson, by a Director who
was present in the Meeting and duly authorized by the Board for the purpose.
16.3 The Chairperson should initial each page of the Minutes, sign the
last page of the Minutes and append to such signature the date on which
he has signed the Minutes.
16.4 Minutes, once entered in the Minutes Book, should not be altered.
However, minor errors may be corrected and initialled by the Chairperson
even after the Minutes have been signed.
16.5 Minutes should not be pasted or attached to the Minutes Book, or
tampered with in any manner.
16.6 Minutes, if maintained in loose-leaf form, should be bound at
reasonable intervals.
16.7 Minutes may also be kept in electronic form in such manner as
prescribed under the Act.
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Every listed company or a company having not less than one thousand shareholders,
debenture holders and other security holders, should however maintain its Minutes
in electronic form in such manner as decided by the Board.
17.
Recording in the Minutes
17.1 The name of the Chairperson of the Meeting, the Chairpersons of the
Audit Committee, the Nomination and Remuneration Committee and the
Stakeholders Relationship Committee or their authorised representatives
and the names of other Directors present at the Meeting should be
recorded.
17.2 The fact that the required Quorum was present should be recorded.
17.3 The
number
of
Members
present
in
person
and
through
representatives and Proxies should be recorded.
17.4 The presence of the Auditor and the Secretarial Auditor, or their
authorised representative, should be recorded.
17.5 If the Chairperson was interested in an item of business at the
Meeting, the fact that he vacated the Chair and requested the ViceChairperson, if any, or some other Director or Member to Chair the
Meeting to transact such business, should be recorded.
18.
Preservation of Minutes and other Records
18.1 Minutes Book to record Minutes of General Meetings should be kept
separately from those books used to record Minutes of any other meetings
and should be kept at the Registered Office of the company.
18.2 The
Minutes
of
all
General
Meetings
should
be
preserved
permanently in physical or electronic form.
Minutes can be inspected by any Member.
27
The Practising Company Secretary appointed by the company or the Secretarial
Auditor or Statutory Auditor or Internal Auditor or Cost Auditor of the company can
inspect the Minutes in the course of audit.
Officers of the Registrar of Companies, or other Government or regulatory bodies,
during the course of an inspection, can also inspect the Minutes.
Inspection of Minutes Book may be allowed in electronic form.
18.3 Where, under a scheme of arrangement, a company has been
merged or amalgamated with another company, the Minutes of all
Meetings of the transferor company, as handed over to the transferee
company, should be preserved permanently by the transferee company,
notwithstanding that the identity of the transferor company may not
survive such arrangement.
18.4 Office copies of Notices and supporting papers relating to the
Notices should be preserved in good order in physical or electronic form
for as long as they remain current or for ten years, whichever is later and
may be destroyed thereafter with the approval of the Board.
19.
Report of the Annual General Meeting
Every listed public company should prepare a report in the prescribed
form, of the Annual General Meeting, including a confirmation that the
meeting was convened, held and conducted as per the provisions of the
Act.
Such report should contain:
(i) the day, date, time and venue of the Annual General Meeting;
(ii) confirmation with respect to appointment of Chairman of the Meeting;
(iii) number of members attending the meeting;
(iv) confirmation of quorum;
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(v) confirmation with respect to compliance of the Act, Rules and Secretarial
Standards with respect to calling, convening and conducting the Meeting;
(vi) business transacted at the Meeting and result thereof;
(vii) particulars with respect to any adjournment, postponement of Meeting, change
in venue; and
(viii) any other points relevant for inclusion in the report.
(d) fair and correct summary of the proceedings of the Meeting.
It should be signed and dated by the Chairman of the Meeting or in case of his
inability to sign, by any two directors of the company, one of whom shall be the
Managing Director, if there is one and Secretary of the company;
Such report should be filed with the Registrar of Companies within thirty days of the
conclusion of the Annual General Meeting.
20.
Disclosure
The Annual Report and Annual Return of a company should disclose the
number and dates of all Meetings held during the last three financial
years.
EFFECTIVE DATE
This Standard shall come into effect from ________________
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