Meeting Circulars

02/01/2022 1 By indiafreenotes

An information circular is a document for a company’s shareholders outlining important matters on the agenda at the annual shareholders’ meeting or a special shareholders’ meeting. The information circular also solicits proxy votes and provides procedures for voting on key issues.

Some companies call an information circular a “Management Information Circular,” a “Notice of Annual Meeting of Shareholders and Proxy Statement,” or a “Notice of Special Meeting of Stockholders.”

Circular letters are used to communicate the same message to a large number of customers and suppliers. If they are written in an attractive style and in an interesting manner it will be effective for business communication.

When a business-man wants to give publicity to a cause or a campaign they go for circular letters. Through such letters the readers are provided with facts and figures about the firm. The circular letters aim to create the interest in the contents and thereby win the confidence of the readers.

Circular letters are normally used when opening of a new branch, change of premises, introduce a new article, reduction of sales, admission, retirement and death of a partner and change in the constitu­tion of the firm.

While drafting a circular the following points should be kept in mind:

  • The circular letter must be drafted carefully.
  • They must be informative.
  • They must not be ambiguous.
  • The circulars must be courteous in tone and pleasing in form.
  • While drafting a circular letter the purpose of the same should be kept in mind.
  • The circular letter must be concise.

Purposes:

The circular letters are issued for many purposes.

Generally, a circular letter conveys the following types of information:

  • Establishment or transfer of a business.
  • Opening of a new branch.
  • Change of premises.
  • Taking over a business or closing down a business.
  • Dissolution or amalgamation of business.
  • Appointment, discharge or retirement of an important employee.
  • Admission or death of a partner.
  • Issue of bonus shares.
  • Offer of right shares to shareholders.