Section 100 of CA 2013 : Section 100: Calling Of Extraordinary General Meeting

Explanation using Example

Imagine a scenario where the shareholders of "XYZ Pvt. Ltd." are concerned about the company's direction and want to propose a new business strategy. The company has a share capital, and a group of shareholders who collectively hold 12% of the paid-up share capital with voting rights decide to take action. They make a requisition to the Board of Directors, asking for an Extraordinary General Meeting (EGM) to discuss their proposal.

The requisition is signed by these shareholders and sent to the company's registered office. However, the Board fails to call the EGM within 21 days of receiving the valid requisition. Consequently, under the provisions of Section 100, the concerned shareholders themselves call the EGM within 45 days of their requisition.

The EGM is held following the same procedures that the Board would normally use. After the meeting, the company reimburses the shareholders for the reasonable expenses they incurred in calling the EGM. These reimbursement costs are then deducted from the remuneration of the directors who did not take the initiative to call the meeting as required by law.