What are the provisions relating to Annual General meeting?


0

Annual general meeting of the company is an annual meeting of the body of the member held every year.

Companies to hold AGM: Every company can hold annual general meeting whether having shares capital or not, whether limited or unlimited.

Time limit:

First Annual general meeting:

A company may hold its first annual general meeting within a period of 18 month from the date of incorporation. However this should not be more than 9 months from close of financial years.

Subsequent meeting:-

  1. There must be one meeting held in each year.
  2. The gap between two annual general meetings must not be more than 15 months.
  3. Meeting must be held not later than 6 months from close of financial year.

Extension of time: the registrar has the power to extend the time of 15 months by 3 more months in special cases.

Day, hour and place of meeting: The meeting can be held at any working place, on any working day and working hours.

If the day scheduled for meeting is declared by the Central Government to be a public holiday after the issue of the notice, it shall not be deemed as a holiday.

Notice of the meeting: 21 clear days notice or any shorter notice if agreed by all shareholders must be given.

Business to be transected

(1)     Ordinary business:-

(a)     To present the balance sheet, report of Board of Directors, etc.

(b)     To declare dividends.

(c)     To appoint directors.

(d)     To appoint auditors and fixation of their remuneration

(2)     Special Business:-

Any other business which is not an ordinary business

Default in holding Annual general meeting

The Company Law Board on petition from member shall call or direct the calling of the general meeting of the company.

Penalty:

If default is made in holding AGM, the company and every officer in default shall be punishable with fine which may extend to RS. 50,000/- . In case the default continues, a further fine upto Rs. 2,500/- per day may be levied till such default continues.

The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]

Like it? Share with your friends!

0
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]

4 Comments

  1. “The gap between two annual general meetings must not be more than 15 years.”
    the above mentioned statement is written in your blog. please rectify it. As per my best Knowledge 15 years is nowhere mentioned in Act…. it is 15 month.

Facebook comments:

Ask Us On WhatsApp