1. The Board may, whenever it deems fit, call an extraordinary general meeting of the company.
2. The Board shall, at the requisition made by,
a. in the case of a company having a share capital, such number of members who hold, on the date of the receipt of the requisition, not less than one-tenth of such of the paid-up share capital of the company as on that date carries the right of voting;
b. in the case of a company not having a share capital, such number of members who have, on the date of receipt of the requisition, not less than one-tenth of the total voting power of all the members having on the said date a right to vote, call an extraordinary general meeting of the company within the period specified in subsection (4 ).
3. The requisition made under sub-section (2 ) shall set out the matters for the consideration of which the meeting is to be called and shall be signed by the requisitionists and sent to the registered office of the company.
4. If the Board does not, within twenty-one days from the date of receipt of a valid requisition in regard to any matter, proceed to call a meeting for the consideration of that matter on a day not later than forty-five days from the date of receipt of such requisition, the meeting may be called and held by the requisitonists themselves within a period of three months from the date of the requisition.
5. A meeting under sub-section (4 ) by the requisitionists shall be called and held in the same manner in which the meeting is called and held by the Board.
6. Any reasonable expenses incurred by the requisitionists in calling a meeting under sub-section (4 ) shall be reimbursed to the requisitionists by the company and the sums so paid shall be deducted from any fee or other remuneration under section 197 payable to such of the directors who were in default in calling the meeting.
Legal Commentary & Landmark Judgments: Section 100
Section 100 governs the calling of Extraordinary General Meetings (EGM), granting qualifying shareholders an absolute democratic right to requisition an EGM to resolve urgent corporate matters.
Any reasonable expenses incurred by the requisitionists must be reimbursed by the company and deducted from the remuneration of defaulting directors.
Section 100 is the most potent democratic check against entrenched corporate boards. Institutional investors, private equity funds, and minority coalitions frequently deploy Section 100 to requisition meetings for the removal of errant directors under Section 169. Requisitionists must strictly adhere to the twenty-one clear days notice rule and conduct the meeting strictly in accordance with statutory procedures.