{"id":2162,"date":"2019-10-11T18:16:25","date_gmt":"2019-10-11T12:46:25","guid":{"rendered":"https:\/\/aktassociates.com\/blog\/?p=2162"},"modified":"2019-10-22T18:07:05","modified_gmt":"2019-10-22T12:37:05","slug":"annual-general-meeting-under-companies","status":"publish","type":"post","link":"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/","title":{"rendered":"Annual General Meeting under Companies\u00a0"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >In this article, we will discuss about...<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1e73be;color:#1e73be\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1e73be;color:#1e73be\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/#What_is_AGM_Annual_General_Meeting\" title=\"What is AGM (Annual General Meeting)?\">What is AGM (Annual General Meeting)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/#Is_the_only_the_Company_required_to_hold_AGM\" title=\"Is the only the Company required to hold AGM?\">Is the only the Company required to hold AGM?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/#AGM_Holding_Frequency\" title=\"AGM Holding Frequency:-\">AGM Holding Frequency:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/#Time_period\" title=\"Time period:-\">Time period:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/#Important_Points\" title=\"Important Points:-\">Important Points:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/#POINT_to_be_Noted_%E2%80%93\" title=\"POINT to be Noted:&#8211;\">POINT to be Noted:&#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/#Transactions_executed_in_AGM_%E2%80%93\" title=\"Transactions executed in AGM:&#8211;\">Transactions executed in AGM:&#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/#Special_Business_Transactions\" title=\"Special Business Transactions\">Special Business Transactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/#Notice_for_Calling_of_Meeting\" title=\"Notice for Calling of Meeting:-\">Notice for Calling of Meeting:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/#_CRUCIAL_points_to_be_pondered\" title=\"\u00a0CRUCIAL points to be pondered:-\">\u00a0CRUCIAL points to be pondered:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/#Default_In_Holding_the_AGM\" title=\"Default In Holding the AGM :\">Default In Holding the AGM :<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_AGM_Annual_General_Meeting\"><\/span><b>What is AGM (Annual General Meeting)?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An\u00a0<\/span><b>annual general meeting<\/b><span style=\"font-weight: 400;\">\u00a0(<\/span><b>AGM<\/b><span style=\"font-weight: 400;\">) is a\u00a0 meeting that is required to be held a mandatory <\/span><b>yearly<\/b><span style=\"font-weight: 400;\"> gathering of a company&#8217;s interested shareholders. Whereas At an\u00a0<\/span><b>AGM<\/b><span style=\"font-weight: 400;\">, the<a href=\"https:\/\/aktassociates.com\/blog\/active-non-compliant-companys-director\/\"> company\u2019s director<\/a> presents an annual report containing information for shareholders regarding the company&#8217;s performance and strategy for ahead vision.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2165 size-full aligncenter\" src=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/annual-genral-meeting.png\" alt=\"annual general meeting\" width=\"700\" height=\"400\" srcset=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/annual-genral-meeting.png 700w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/annual-genral-meeting-300x171.png 300w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/annual-genral-meeting-20x11.png 20w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_the_only_the_Company_required_to_hold_AGM\"><\/span><b>Is the only the Company required to hold AGM?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">AGMs are not only just held by companies. <\/span><b>For example,<\/b><span style=\"font-weight: 400;\"> universities, schools, charities, and unions could all be required to hold an AGM to discuss the future of the organization or institution in question.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"AGM_Holding_Frequency\"><\/span><b>AGM Holding Frequency:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Every Company shall in each year hold, in addition to any other meetings, a General Meeting as its Annual General Meeting. However, <a href=\"https:\/\/aktassociates.com\/blog\/one-person-company-opc-features\/\">OPC companies<\/a> are not required to hold AGM. Accordingly, Company will have to specify the meeting as such that required t be conducted in the notices calling Annual General Meeting.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Time_period\"><\/span><b>Time period:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">The first AGM of the Company should be held within 9 months from the closing of the financial year.\u00a0<\/span><\/li>\n<li><b><span style=\"font-weight: 400;\">Subsequent AGM of the company should be held within 6 months from the closing of the financial year<\/span><\/b><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Important_Points\"><\/span><b>Important Points:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The gap between the holding two subsequent meetings i.e. AGM should not exceed 15 months.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In case, if it is not possible for a company to hold AGM within the prescribed time, the registrar may, for any special reason, extend the time within which any AGM shall be held. However, such an extension can be for a maximum of 3 months. No such extension is allowed for the holding of the first AGM.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is no need to hold an AGM in the case of the one-person company.<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"POINT_to_be_Noted_%E2%80%93\"><\/span><b>POINT to be Noted:<\/b><span style=\"font-weight: 400;\">&#8211;<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Timing restrictions need not be followed in case of an Extraordinary General Meeting(EGM)<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Transactions_executed_in_AGM_%E2%80%93\"><\/span><b>Transactions executed in AGM<\/b><span style=\"font-weight: 400;\">:<\/span><span style=\"font-weight: 400;\">&#8211;<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Two categories of transactions may be executed depending upon the nature of the business that required to be conducted. Two of them transactions namely, Ordinary business transactions and Special Business Transactions<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further Ordinary business transactions are the following namely:-<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\">The consideration\/adoption of financial statements and the reports of the Board of<\/span><span style=\"font-weight: 400;\">\u00a0Director and auditors<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> The declaration of dividend, if any<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> The appointment of directors in place of those retiring<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> The appointment of fixing of the remuneration of the auditors.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">In all these transactions, Ordinary Resolution required to be passed for transacting ordinary business Items.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Special_Business_Transactions\"><\/span><b>Special Business Transactions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">All other businesses will be Special business transactions that require a special resolution.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Notice_for_Calling_of_Meeting\"><\/span><b>Notice for Calling of Meeting:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">For transacting the above business, there is a requirement of Resolutions either they may by Ordinary Resolution or Special Resolution. For this Resolution, we need to Intimate our Stakeholders by way of notice. The following are the characteristics of Notice are as given below:-<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> Notice of AGM shall be given to every Member of the company, every Director, Auditors, Secretarial Auditor, Debenture trustee (if any) and other specified persons.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Notice and another document shall be given at least 21 days in advance of the meeting. For the purpose of reckoning 21 days, the day of sending the notice and the day of the meeting shall not be counted. If notice is given by post\/courier, an additional 2 days shall be provided for the service of the meeting.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Shorter notice may be allowed if consent is obtained from 95% of the meeting entitled to vote at such a meeting.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Notice shall specify the day, date, time and full address of the venue of the meeting.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\"><strong>Note:<\/strong> Any accidental omission to give notice or the non-receipt of such notice by any member or other person entitled to such notice of the meeting shall not invalidate the proceedings of the meeting.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"_CRUCIAL_points_to_be_pondered\"><\/span><b>\u00a0<\/b><b>CRUCIAL points to be pondered:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><b><span style=\"font-weight: 400;\">In the case of companies having a website, the notice shall be simultaneously hosted on the website until the conclusion of the meeting.<\/span><\/b><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">Notice shall clearly specify the nature of the meeting and the business to be transacted thereon.<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">Notice shall be accompanied by an attendance slip and proxy form with clear instructions.<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">No business shall be transacted at a meeting if notice in accordance with this standard has not given and the business is permitted by the Act.<\/span><\/li>\n<\/ul>\n<h2><a href=\"https:\/\/aktassociates.com\/start-a-business\/private-limited-company-registration\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1914 size-full\" src=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/09\/Register-Your-company-1-1.png\" alt=\"Register Your company\" width=\"700\" height=\"150\" srcset=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/09\/Register-Your-company-1-1.png 700w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/09\/Register-Your-company-1-1-300x64.png 300w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/09\/Register-Your-company-1-1-20x4.png 20w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Default_In_Holding_the_AGM\"><\/span><b>Default In Holding the AGM :<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As per the<a href=\"https:\/\/aktassociates.com\/blog\/incorporation-of-company\/\"> company act, 2013<\/a>, it is mandatory for the company to hold AGM as per prescribed Periods. However, if any non-compliance happens then Punishment has been prescribed that is:-<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Company and every officer of the company, who is in default shall be punishable with fine which may extend to rupees 1,00,000 and in case of continuing default, with a further fine which may extend to rupees 5000 for each day during which the default continues.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is AGM (Annual General Meeting)? An\u00a0annual general meeting\u00a0(AGM) is a\u00a0 meeting that is required to be held a mandatory &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Annual General Meeting under Companies\u00a0\" class=\"read-more button\" href=\"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/#more-2162\">Read more<span class=\"screen-reader-text\">Annual General Meeting under Companies\u00a0<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":2167,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Annual General Meeting under Companies\u00a0 AKT Associates<\/title>\n<meta name=\"description\" content=\"An\u00a0annual general meeting\u00a0(AGM) is a\u00a0 meeting that is required to be held a 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