No tea cofee and snacks in agm

MCA 2926 views 26 replies

 

 

 

The Ministry of Corporate Affairs has been receiving representations form various stakeholders that it has become a general practice in the country to give gifts to the shareholders while they attend any AGM in addition to the dividend recommended by the Board of Directors.

 

 

It has also been brought to the notice of the Ministry that the companies offer gifts, extravagant food and other charms to shareholders who attend AGM to divert the attention of the shareholders from the main purpose of AGM and their right of key role in the management of the company through AGM. In addition, shareholders are made busy to collect gifts, gift coupons, packet of snacks etc., in the duration of meeting while corporate manage to pass certain resolutions without any debate on the same.

The Secretarial Standards on General Meeting issued by the Institute of Company Secretaries of India has also specifically mentioned that no gifts, gifts coupons or cash in lieu of gifts should be distributed to the members at or in connection with the meeting.

Keeping the principle of good corporate governance view, it has been decided that no company shall offer any other thing except tea, coffee, soft drinks and snacks etc in the AGM. As a courtesy to the shareholders, the same may be made available before the start of the meeting. Any other gifts, food coupons or gift coupons and other enticement shall be treated as misconduct on the part of board of directors of the company. The directors of such companies shall be liable to pay back the cost of such expenses to the company and shall also be liable for the penal action as provided under section 168 of the Companies Act, 1956 for not convening the AGM properly as required under section 166 of the Companies Act, 1956.

Source:

https://corporatelawreporter.com AND navbharttimes.com



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Replies (26)

However MCA has asked for stake holders opionion on above proposel.

Yes it should be banned  and penalized , 

right move 

Thanks for sharing bro.

What's the problem in giving tea & coffee...............how the shareholders attention is diverted by getting tea & coffee.................???

 

Bad move i think...........

dev its a gud move yaar...agar kisi ko free ka khana milega in d meeting toh woh meeting mein intrst lega ya khane mein??..

nice move ....

Originally posted by : *RENU*

nice move ....

Guys you can send your opinion directly to MCA. Mail address is provided on the link posted below the article.

nice move :-))

nice move...........

bad move i think

thanks fr sharing

nice move..................

gud mve i thnk coz it tkes into account th basic phycology of human beings....................dnx 4 sharing.................

to phir mukesh uncle se kah do ab se hum AGM me nahi aayenge.............................lolz


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