PART - VIII 
GENERAL MEETINGS  

Approval of the Shareholders and General Meetings 

66. i. Approval of the share holders under this Act means: 

a. resolution  passed at  a General  Meeting of  which notice required under section  66 (ii) (a) has been given and the votes cast in favour of the  resolution by  the shareholders  present and  entitled to vote exceed the votes cast against the resolution. 

b. resolution which is circulated to all shareholders entitled to vote along with  reasons for  proposing the resolution and agreed to by the shareholders holding a majority of the shares. 

ii. a.  The Board may convene a General Meeting of shareholders at any time by  giving not  less than  thirty clear days notice in writing to the shareholders  unless shorter  notice is  agreed  to,  by  all  the shareholders entitled to vote. 

b. Any  accidental omission  to give the notice shall not invalidate a General Meeting convened. 

c. A  General Meeting  must be  held at  the registered  office of the company or at such place within Bhutan as the Board may decide. 

iii. Shareholders  holding not less than 20% of the voting shares of a company shall  be entitled  to call  a General  Meeting provided  that fifteen days  notice is  given to  the company  and  the  Board  shall convene the meeting in accordance with subsection 66(ii) (a). 

iv. a.  A notice  convening a  General Meeting shall specify the date, time and  place of  the meeting and contain a statement of business to be transacted  thereat along  with reasons therefore and the interest, if any, of the Directors in the business. 

b. A  notice convening  a General  Meeting shall  be advertised  in  a national newspaper at least once before the date of meeting. 

Annual General Meeting 

67. i.  The first  Annual General  Meeting shall  be  convened  within ninety days of the registration of the company. 

ii. In  addition to  first Annual  General Meeting  or  other  General Meetings, the  company shall  within six  months of  the close  of the financial year or such extended time as the Department may permit hold a General  Meeting called Annual General Meeting at which, inter alia, the following business should be transacted - 

a. consideration  of the  annual accounts,  Report  of  the  Board  of Directors and the auditors thereon; 

b. declaration  of dividends  (other than  interim  dividends  already paid) which shall not exceed the amount or rate recommended by Board; 

c. appointment  of Directors in place of those retiring upon expiry of their term; and 

d. noting the appointment of auditors by board. 

iii. The  agenda for the Annual General Meeting shall also include any business required  to be  included therein by shareholders holding not less than  10% of  the total  votes if a request in writing is made to the company  not less  than forty  five days  before the  date of  the meeting. 

iv. In  case of  Government Companies  the  Government  may,  as  sole shareholder, enter  into alternative  arrangements with  the Board for the conduct  of business  that  would  otherwise  be  required  to  be transacted at  General or  Annual General  Meeting provided  that  the prescribed period  of six  months or  duly extended  permitted  period relating to  matters specified  in subsection  it) of this section and also the  provisions of  section 68 relating to minutes of proceedings shall be applicable to Government Companies. 

Provisions Relating to General Meetings 

68. i. The Chairman of the Board or in his absence any Director, or in the absence  of Directors,  a shareholder  elected by the shareholders present shall  take the  chair at  any Annual or other General Meeting and shall  have all the powers necessary for the proper conduct of the meeting. 

ii. Where  a company or body corporate holds shares in a company, such shareholding company  or body  corporate may  by a  resolution of  its Board  or   through  its   attorney   duly   authorised,   appoint   a representative to  attend any  Annual or  other General Meeting of the other company  and vote thereat and such representative shall have all the powers of the shareholder. 

iii. A  shareholder entitled  to attend  and vote shall be entitled to appoint another  person as  a proxy  to attend  and to vote instead of himself ad  the authority  of proxy  shall  be  deemed  to  have  been cancelled if the shareholder entitled to vote attends in person. 

iv. a.  Minutes shall  be kept of the proceedings of a General Meeting and entered in a separate bound book within thirty days of the meeting and shall not be pasted or otherwise affixed to the minute book. 

b. The  minutes of  each meeting  shall contain  a  fair  and  correct summary of  proceedings thereat  and shall  set  out  the  resolutions passed  with   number  of   votes  cast  in  favour  and  against  the resolutions. 

c. The  minutes shall  be signed  within thirty days of the meeting by the Chairman  of the  meeting or  in his  absence, any  two  Directors (including Managing  Director) present at the meeting and appointed by the Board for the purpose. 

d. Minutes of meetings shall be conclusive evidence of the resolutions passed by the shareholders.