Section 20G of The Small Industries Development Bank of India Act, 1989
1[20G. Matters to be discussed and procedure in annual general meeting.--(1) The shareholders present at an annual general meeting shall be entitled to discuss and adopt--
- (a)the balance-sheet and profit and loss account of the Small Industries Bank made up to the date on which its accounts are closed and balanced;
- (b)the report of working of the Small Industries Bank for the period covered by the accounts;
- (c)the auditors report on the balance-sheet and accounts;
- (d)proposals for declaration of dividend and capitalisation of reserves;
- (e)appointment of auditors referred to in sub-section (1) of section 30.
- (2)The shareholders present at an annual general meeting may also discuss any other matter to be transacted at such meetings in accordance with the provisions of this Act. (3) The matters relating to--
- (a)the manner in which annual general meeting or other meetings are held under this Act and the procedure to be followed thereat;
- (b)the manner in which voting rights may be exercised and resolutions may be passed; and
- (c)the procedure for transaction of business at such meetings and related matters. shall be such as may be prescribed.]
Summary
- Shareholders at the annual general meeting have specific items they must discuss and adopt.
- They review the balance-sheet, profit and loss account, working report, and auditor's report.
- They also handle proposals for declaring dividends and capitalizing reserves.
- Shareholders appoint auditors as required under Section 30 during this meeting.
- Under Section 30, these auditors must be selected from a panel approved by the Reserve Bank.
- The Reserve Bank fixes the term and pay for these appointed auditors.
Practical examples
FAQ
1. Can shareholders talk about topics not specifically listed in the law during the meeting?
Yes, they may also discuss any other matter to be transacted at such meetings in accordance with the Act.
2. Who decides how much the auditors get paid?
Under Section 30, the Reserve Bank fixes the remuneration of the auditors.
3. What documents must be discussed at the meeting?
The balance-sheet, profit and loss account, bank's working report, and the auditor's report.
Test yourself
Q1.Under Section 20G of The Small Industries Development Bank of India Act, 1989, which of the following is an explicit item shareholders are entitled to discuss and adopt at the annual general meeting?
Q2.Under Section 20G and Section 30 of The Small Industries Development Bank of India Act, 1989, what is the correct process for appointing an auditor at the annual general meeting?
Q3.Under Section 30 of The Small Industries Development Bank of India Act, 1989, whose duty is it to examine the annual balance-sheet along with accounts and vouchers?
Q4.Under Section 20G of The Small Industries Development Bank of India Act, 1989, what document accompanies the balance-sheet for discussion at the annual general meeting?