Explain the following terms/concepts.
1) Committee Meeting
1) Meaning: In a Joint Stock Company the usual committees are formed from among the members of the Board of Directors. A meeting of the members of such committee is called committee meeting e.g. a meeting allotment committee.
2) Legal Provisions: The Articles of Association of the company provide for the appointment of different committees and holding their meetings to expedite the managerial work. Such committee is formulated to investigate and submit a report after a careful examination of various aspects of the problem under investigation from all possible angles. The rules and procedure for convening and conducting committee meeting are generally laid down by the Board.
3) Assistance: The Secretary has to provide needed assistance to the committee. He is required to prepare and maintain separate minute’s book to record the proceedings of committee meetings. 4) Frequency: The committee collects the relevant information of the problem under consideration and holds several meetings for a detailed study of the collected information. The committee then prepares a report for consideration and approval of the Board. To carry out the assigned work systematically, to discuss the problems and to exchange views, the committee members frequently arran
2) Virtual Meeting
1) A virtual meeting means Directors around the city or outside the city regardless of their location use audio video and link online, use video teleconference software. This is a quicker and efficient way to co-ordinate and conduct urgent meeting with various members or departments in an organisation.
2) It depends on the flow of information and ease of communication between the participants. The meeting should be capable of recording and recognising the participation of Directors. However, in certain cases Central Government specifies certain matters that cannot be discussed and dealt through video conferencing or other audio visual means.
3) Creditors Meeting
Meaning: The creditors of the company include debenture holders, depositors, company bankers, lenders and other financial institutions. Etc. A meeting arranged and held with creditors for discussion and taking decisions on certain problems relating to the terms and conditions of loans which affect their interest is called creditors meeting.
Purpose of creditors meeting:
The creditors meeting is usually held:
(1) to make compromise in disputes with its creditors
(2) to alter the rate of interest
(3) to alter the terms of security
(4) to modify the rights of creditors such as debenture holders, depositors and other creditors, etc.
(5) to get support of the creditors When a company passes through a financial crisis.
(6) To compute the amount payable by the company to creditors and contributors when a company goes into liquidation or adjudicated insolvent by the court.
2) Legal provisions: The procedure of holding creditors meeting is laid down by the Companies Act, 2013. Similarly, the rules and procedure for holding such meeting are usually provided in the trust deed, e.g. debenture trust deed.
3) Frequency: Creditors meetings are held whenever the decisions affecting their interest are to be taken. Such a meeting is very rarely arranged and it is normally convened in the case of the Winding-up of the company.
4) Types: Creditors meetings are classified as meeting of debenture holders, meeting of depositors and meeting of other creditors such as trade creditors, suppliers, loan creditors, etc. A creditors meeting may be arranged class wise for discussion and solving varied problems of Creditors.