Question

Distinguish between the following

Shareholders’ Meeting and Board Meeting

Answer 1

Sr no	Shareholder meeting	Board meeting
1	A meeting of all the shareholders or members of the company is called a Shareholders’ Meeting.	A meeting of all the Directors of the company is called as Board Meeting.
2	Frequency of meeting depends on the type of meeting. Annual General Meeting is held once in every year and Extraordinary General Meeting is held as and When required.	Board Meeting is held once in every 3 months and minimum 4 meetings in a period of 1 year. The time gap between two consecutive Board Meetings should not be more than 120 days.
3	The quorum for a shareholders’ meetings (a) For Public Company Member Quorum Not more 1000- 5member 1001 to 5000-15 member Above 5000-30 member b) For private company : 2 member	The quorum for a Board Meeting is minimum 2 directors or 1/3rd of the total strength of Directors, whichever is higher.
4	A shareholder can appoint a proxy to attend and vote at meeting on his behalf, if he is unable to attend the meeting.	A Director cannot appoint proxy to attend and vote in the Board Meeting on his behalf.
5	A notice of this meeting must be sent to all the members at least 21 days in advance.	A notice of Board Meeting must be sent to all the Directors at least 7 days in advance.
6	The purpose of this meeting is to get approval of the shareholders on certain matters like appointment of Directors and auditor, approval of annual report, etc. and inform them about the progress and activities of the company.	The purpose of this meeting is to discuss important issues, decide upon policy matters like issue of shares, calls on shares, appointment of staff, etc their implementations and to review the progress made by the company.