e Statr tory Mer ting. The Statutorn meeting is the first official n;eeting of the shareholders of a COJrr anV NN here thev get an opportunity to exercise Ihcr rights as rnennbe.s for the first time it also gives then. an oppor.unitv to check up the performance of the promoters and first directors since irrcorpora hon Because of the importance of this meeting the Companies Act allows some statute y rights to members relating to the statutory meeting
238 'S: SECRETARIAL PRACTICE
1. Right to discuss the statutory report. llembers prep 3 meeting leave the liberty to discuss any matter relating to the for no A company or arising out of the statutory report, whether preN ions no-ice c-'
matter has been gin en or not. They haste also the right to discuss other marry not set out hi the report by giving previous notice of the same as per the
2. Right to adjourn the meeting. Members present at the statutory meeting have also the right to adjourn the meeting from time to time to enable thetu to discuss at the adjourned meetings any resolution of previous notice has heed given either before or after the ongirial nueetmg. At the adjourned meetings, the members shall have the same powers and privileges as in the
3. Right to inspect List ui'Menbers. I lie Act requires the directors of the company to prepare a list sl Nov ing the names, addresses, occnpahons of ulemhers and number of shares held by each of thorn and keep it ready for production at the statutory me'eting for inspection of rnembers. The members have a right to inspect the fist of members any time during the continuance of t he meeting.
4 . Right of appeal to the Court. Members have the right to file petition to the Court for compulsory funding up of the company, if the compamy makes default in holding tire statutory meeting or in issuing and filing the statutory report as per the A ct.
Procedure. After receipt of the Certificate of • Commencement, the Board should decide on holding the Statutorv Meeting witlun a period of not less than one month and not more than six months from the date of certificate of . TheSecretarv should prepare a draft of the Statutory Report and the notice for convenung. A Board meeting should then he convened to approve the R port and Ihe notice, along With an Yresolutionproposedto hemmed at the meeting Arraugenshould then he made to get the Report certified as correct by two directors. including the Managing Director if there is one, and to obtair the auditor's certificate as tothe correctness ofthe shares allotted and receipts and payments of cash. The notice of the mceting.should then be sent to members along with the statutory leport at least 2 1 daysbefore the date ofthe meeting immediately thereafter, a cer if led copy of the report the Registrar. The secretary should also prepare a list showing names, addresses, occupations and sharehoidings of members.
At the start of the meeting, the Chairman will ask the secretary to read tee notice of tl.e meeting. The Secretarv shonldtllen place the list of.nembers the meeting. The list will remain open for inspection bv members
f COMPANY MEETINGS 239
in the Report be approed. Resolutions, if any, may also be moved and discussed. After discussions of members the repbrt will be approved. The meatmg, u ill -end with a vote of thanks to the chair
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