Annual General Meeting
Annual General Meeting is an important annual event where members get an opportunity to discuss the activities of the company.
Holding of Annual General Meeting –
Section 96 of the Companies Act, 2013 contains provisions regarding the holding of Annual General Meeting.
- It provides that every company, other than a One Person Company is required to hold Annual General Meeting every year.
- The first Annual General Meeting of a company shall be held within a period of nine months from the date of closing of the first financial year of the company. Hence it shall not be necessary to hold any AGM in the year of its incorporation.
- Subsequent Annual General Meeting should be held within a period of six months from the date of closing of the financial year.
- The gap between two Annual General Meetings should not exceed 15 months.
Extension of validity period of Annual General Meeting –
In case, it is not possible for a company to hold an annual general meeting within the prescribed time, the Registrar may, for any special reason, extend the time within which any annual general meeting shall be held, by a period not exceeding three months. No extension of time can be granted by the Registrar for the holding of the first Annual General Meeting.
Time and place for holding an Annual General Meeting –
Every annual general meeting shall be called during business hours, that is, between 9 a.m. and 6 p.m. on any day that is not a National Holiday. It shall be held either at the registered office of the company or at some other place within the city, town or village in which the registered office of the company is situated.
The Central Government may exempt any company from these provisions subject to such conditions as it may impose.
For this purpose, “National Holiday” means and includes a day declared as National Holiday by the Central Government.
Power of Tribunal to call annual general meeting –
Section 97 of the Companies Act, 2013 states that if any default is made in holding the annual general meeting of a company under section 96, the Tribunal may, notwithstanding anything contained in this Act or the articles of the company, on the application of any member of the company, call, or direct the calling of, an annual general meeting of the company and give such ancillary or consequential directions as the Tribunal thinks expedient.
Further such directions may include a direction that one member of the company present in person or by proxy shall be deemed to constitute a meeting.
A general meeting held in accordance with this section shall, subject to any directions of the Tribunal, be deemed to be an annual general meeting of the company under this Act.
Default in holding the annual general meeting –
If any default is made in holding a meeting of the company in accordance with section 96 or section 97 or in complying with any directions of the Tribunal, the company and every officer of the company who is in default shall be punishable with fine which may extend to one lakh rupees and in the case of a continuing default, with a further fine which may extend to five thousand rupees for every day during which such default continues.
Annual General Meeting
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