Purpose and Types of Business Meeting

Business Meeting is the most important part of business. If there is no meeting in a business to sort out the basic issues or to boost the range of the business, then it may cause a massive loss or a great miscommunication among the top authorities. All those people, who participates in business meeting are known as the participants of business meeting. There are many purposes of scheduling a business meeting. The primary purpose of any meeting is to address the issues, which affect the productivity and operations of a company. Such issues can cause a decrements in the net profit or can be a reason to lose the reputation of the company. To achieve the primary goal of the meeting, the leaders should take hard actions to make a meeting effective. Generally, the following are the most common purposes for calling a meeting.

1. For sorting out any conflict
2. For negotiating about an agreement or a contract, or anything relative
3. For dealing with the current problem in a business
4. For getting a report for the purpose of review and assessment
5. To check the current position of the business

In a Business, most of the meetings are arranged for discussing any particular issue with the Board of Directors, an accountability partner or business partners. While on the other hand, business meetings can also be called to check the cash flow statement, income statement and the balance sheet of the business.

Types of Business Meeting:
According to the experts in the field of business, there are three types of business meetings, i.e. shareholders meeting, directors meeting, and special meeting.

1. Shareholders Meeting
The meeting, which is held to meet the shareholders of the company, is called as shareholders meeting. Further, following are a few divisions of a shareholder meeting.

• Statutory Meeting: As per company laws, a company has to arrange a meeting after receiving the letter of commence. The meeting has to be arranged one month after the first six months of the company. Statutory meeting is held only once in the whole span and is the first most meeting of any company. It is necessary to give an advertisement at least 21 days before calling a statutory meeting. The decision taken in a statutory meeting is known as a statutory decision.
• Annual General Meeting: It is necessary for any company to call the first general meeting within 18 months after getting registered as a company. Following the sequence, general meetings are called every year after the first one. There should not be a difference of more than 15 months in two general meetings. Those decisions that are the result of an annual general meeting are known as general decisions.
• Xtra-Ordinary General Meeting: This type of meetings can be scheduled anytime on the demand of the Board of Directors or shareholders. Legally, one tenth of shareholders can arrange this meeting on demand. There is not any scheduled time for this type of meetings according to the company law. The decision, which is taken in an extra-ordinary general meeting, is known as a special decision.

2. Directors Meeting
There is a range of meetings arranged in a business or a company. The meeting that is held among the directors of the company is known as a directors meeting. Usually, calling a directors meeting may lead to a gigantic change in a company. There are two kinds of Directors Meetings i.e. Board Meeting and Committee Meeting.

• Board Meeting: As per article of association, Board Meeting is such a meeting, which is held between the directors of the company. The company is obligated to arrange a board meeting anyhow once in a month or at least four times in the span of a year according to the company law. The Quorum of a board meeting should be filled with 3/1 directors or there should be the presence of at least 2 directors. Every director has right to cast one vote. In some cases, when the directors’ vote is divided equally, then the president has to cast a vote and take a certain decision.
• Committee Meeting: As stated in the article of association, the Board of Directors forms a special committee with a few directors to achieve or fulfill any special task. The meeting, which is held between the members of the committee for any purpose is called a committee meeting.

3. Special Meeting
When any meeting is arranged about any special issue or challenge is called special meeting. This meeting is called by the company through special invites. A special meeting is of two kinds i.e. Class Meeting and Creditors Meeting.

• Class Meeting: There are a few various kinds of shares issued by a company. When a meeting is held among one kind of shareholders for any purpose, it is called a class meeting. Certainly, this meeting has something that belongs to only a specific class.
• Creditors Meeting: There are many reasons behind arranging a creditors meeting. Usually, a creditors meeting is arranged by the directors of the company or lower staff appointed by the directors. In addition, this meeting is also scheduled on the order of the court. Any person of higher authority calls for a creditors meeting with the purpose to reconstruct, dissolve or any other action to protect the rights of the creditor.

The presence of three-fourth credit holders of the company can take a decision. After that, the court will provide the instructions on the basis of the decision taken by the creditors who were present in the meeting. The creditors have to accept the decision and abide by the instructions of the court anyhow.