MEETINGS OF SHAREHOLDERS 129
shown in the case of East v. Bennett Brothers (1911), 1 Ch.
163). In that case by the memorandum no new shares
could be issued so as to rank equally with or in priority to the
existing preference shares, unless the issue was sanctioned
by an extraordinary resolution of the holders of the pre-
ference shares at a separate meeting of the holders specially
summoned for the purpose. The existing preference shares
being all in the hands of one person, and there being nothing
in the constitution of the company to prevent one person
holding them all, the word ‘meeting’ was held to be applic-
able to the case of a single shareholder.

The general meetings of a going company comprise the
statutory meeting, ordinary general meetings, and extra
ordinary general meetings.

The statutory meeting (s. 113) is a general meeting of the
members, which must be held by a company limited by
shares or limited by guarantee and having a share capital not
less than one month nor more than three months from the
date at which the company is entitled to commence business.
The object of the statutory meeting is to give shareholders the
opportunity of making themselves acquainted with the
promotion and flotation of the company, both by means of
the statutory report (see below) which they receive before the
meeting, and by means of discussion at the meeting, in case
there are any points not included in the report upon which
they desire information. The provisions as to the statutory
meeting and statutory report do not apply to a private
company [s. 113 (10)]; but they do now apply to a company
limited by guarantee if it has a share capital.
The statutory meeting is a general meeting, and accordingly
there seems no doubt that the provision of s. 112 that a general
meeting of every company is to be held once at the least
in every calendar year, and not more than fifteen months
after the holding of the last preceding general meeting, is
complied with in the first instance by holding the statutory
meeting. ‘Calendar year’ means the period from January 1
to December 31, and not the period of a year dating from the
company’s registration [Gibson v. Barton (18735), L.R. 10 Q.B.
329]. A company registered in July, 1929, will necessarily
hold its statutory meeting within that year, i.e. if it becomes
entitled to commence business before the end of September,
1929. Its next general meeting must be held during the
year 1930, at an interval of not more than fifteen months
from the statutory meeting. But a company registered on
September 20. 1029. which becomes entitled to commence

Statutory
Meeting.