Section 101 of CA 2013 : Section 101: Notice Of Meeting

Explanation using Example

Imagine a scenario where XYZ Pvt. Ltd. plans to hold its Annual General Meeting (AGM) on June 15, 2023. According to Section 101 of The Companies Act, 2013, the company is required to send out a notice for this meeting to all its members, auditors, and directors at least 21 days before the meeting, which would be by May 25, 2023.

However, due to an urgent issue that requires shareholder approval, the company decides to hold the meeting on a shorter notice. To do this legally, XYZ Pvt. Ltd. must obtain consent from at least 95% of its members entitled to vote. If the company has a share capital, these members must represent at least 95% of the paid-up share capital that gives them the right to vote at the AGM.

Once the consent is received, the company can proceed with the meeting on shorter notice, ensuring that the notice still specifies the location, time, and agenda of the meeting. If a member is entitled to vote only on certain resolutions, their consent is required only for those specific resolutions.

Even if one of the members does not receive the notice due to an accidental oversight, the AGM can still proceed, and any decisions made will be valid.