Section 97 & 98 Of Companies Act 2013: Power Of Tribunal
Updated: Oct 14, 2022
Both the Sections of the Act, whether section 97 or section 98, deal with the provisions under which a tribunal can call Meetings. Specifically, Section 97 states the power of the tribunal to call an Annual General Meeting in case of any default is made; on the other hand, Section 98 states the power of the tribunal when a company fails to call a meeting other than AGM, In other words, it states the power of the tribunal to call a Meeting of Members other than AGM.
Section 97 of Companies Act 2013: Power of Tribunal to call an annual general meeting
Section 97 shall come into force on 1st June 2016 vide Notification No. S.O. 1934(E) issued dated 01.06.2016.
(1) If any default is made in holding the annual general meeting of a company under section 96, the Tribunal may, notwithstanding anything contained in this Act or the articles of the company, on the application of any member of the company, call, or direct the calling of, an annual general meeting of the company and give such ancillary or consequential directions as the Tribunal thinks expedient:
Provided that such directions may include a direction that one member of the company present in person or by proxy shall be deemed to constitute a meeting.
(2) A general meeting held in pursuance of sub-section (1) shall, subject to any directions of the Tribunal, be deemed to be an annual general meeting of the company under this Act.
Provisions of Section 98 of Companies Act 2013
Amended and updated notes on section 98 of the Companies Act 2013. Provisions and rules related to the power of the Tribunal to call meetings of members, etc.
Chapter VII (Sections 88–122) of the Companies Act, 2013 (CA 2013) deals with the provisions related to management and administration. Section 98 of CA 2013 provides for the power of the Tribunal to call meetings of members, etc.
Recently, we have discussed in detail section 97 (Power of Tribunal to call annual general meeting) of CA 2013. Today, we learned the provisions of section 98 of the Companies Act 2013.
Section 98 of the Companies Act, 2013 has been notified by the Ministry of Corporate Affairs (MCA) via Notification No. S.O. 1934(E) issued dated 01.06.2016. This notification shall come into force from 1st June 2016, i.e., the commencement date of section 98 is 01-06-2016.
Section 98 shall come into force on 1st June 2016 vide Notification No. S.O. 1934(E) issued dated 01.06.2016.
(1) If for any reason it is impracticable to call a meeting of a company, other than an annual general meeting, in any manner in which discussions of the company may be called, or to hold or conduct the meeting of the company in the manner prescribed by this Act or the articles of the company, the Tribunal may, either suo motu or on the application of any director or member of the company who would be entitled to vote at the meeting, —
(a) order a meeting of the company to be called, held, and conducted in such manner as the Tribunal thinks fit; and
(b) give such ancillary, or consequential directions as the Tribunal thinks expedient, including directions modifying or supplementing in relation to the calling, holding, and conducting of the meeting, the operation of the provisions of this Act or articles of the company:
Provided that such directions may include a direction that one member of the company present in person or by proxy shall be deemed to constitute a meeting.
(2) Any meeting called, held, and conducted in accordance with any order made under sub-section (1) shall, for all purposes, be deemed to be a meeting of the company duly called, held, and conducted.