Liquidation means turning fastened belongings into liquid belongings, particularly into cash. Thus an proprietor selling his or her enterprise for cash as a going concern is technically liquidating it—however in ordinary parlance the time period is utilized solely to a scenario where a enterprise is closed and all of its property are sold.
As per part 166 of the Companies Act, an organization isn’t bound to carry any general conferences until the first Annual General Meeting is held. The board of directors must forward a statutory report to each member of the company. If any decision is needed to be passed based on the matters discussed in the statutory meeting, it should be passed at an adjourning assembly to go in accordance with the regulation. The statuary assembly supplies an exception in the rule that solely unfinished business on the authentic meeting should be carried out at the adjourned assembly. The chairman is predicted to adjourn the assembly if the members want to take action, with out invoking any discriminatory powers given to the chairman by the articles of association of the corporate. According to part 433 of the Companies Act, 1956, an organization could also be subjected to winding up if it fails to submit a statutory report or fails to conduct a statutory assembly inside the aforementioned interval. The main objective of the statutory assembly is to make the members familiar with the matters relating to the promotion and formation of the company.
Ca Determines ‘Do Business From Home’ Does Not Constitute ‘doing Business’
The articles of association of a company, therefore, offers freedom to conduct extraordinary general meetings to kind out such issues. Any basic meeting of a company is taken into account to be a unprecedented basic assembly, except the statutory assembly, an Annual General Meeting or any adjournment meeting. Such types of conferences could be fastened by the administrators at any time that seems applicable to the administrators. However, the conferences have to be held in accordance with the rules talked about within the articles of association of the company. The venue for the assembly of the private firm is probably not situated inside the space of jurisdiction of the place where the registered office of the corporate is situated. However, for a personal firm, the time and venue of the conferences is mounted by passing a resolution in any of the meeting. A public company or a personal company, which acts as a subsidiary of a public company, could fix the time of the assembly according to the articles of association of the company.
According to part 287 of the Companies Act, the corporate can increase the variety of quorum through its articles of affiliation. Board conferences can be held anyplace as per the convenience of the board. The board just isn’t bound to pick out a venue for the meeting in the identical city the place the company’s registered workplace is located as in the case of common and statutory meetings. The Companies Act, 1956, does not impose any restrictions on the timing of board meetings. They may be held throughout or outdoors business hours, as per the convenience of the board. Generally, board meetings are held through the day inside enterprise hours.
No resolutions could be taken within the statutory meeting of the corporate. Members attending the meeting may focus on topics concerning the formation of the company or subjects associated to the statutory report. Private firms and government firms aren’t certain to hold any statutory meetings. A meeting earlier than a interval of 1 month can’t be thought of as a statutory meeting of the company. Meetings enable the shareholders to know the continuing proceedings of the company and permit the shareholders to deliberate on sure points.