Annual General Meeting (AGM) is formal annual interaction between Shareholders and the Management of the Company. At AGM, the Directors of the Company present an annual report containing information for shareholders about the company’s performance and strategy.
In pursuant to the third proviso of Section 96(1) of the Companies Act, 2013, every Company other than a One Person Company (OPC) shall in each year hold in addition to any other meetings (Board Meeting), a general meeting as it’s Annual General Meeting (AGM) within a period of six (6) months, from the date of closing of the financial year. For this year it will be 30/09/2021 (Due Date).
If a company fails to hold AGM within due date (30/09/2021) then such Company is liable for penalties under Section 99 of Companies Act, 2013 i.e. Complying with any directions of the Tribunal, the company, and every officer of the company who is in default shall be punishable with a fine which may extend to one lakh rupees and in the case of continuing default, with a further fine which may extend to five thousand rupees for every day during which such default continues.
The Registrar may, for any special reason, extend the time within which any annual general meeting, other than the first annual general meeting, shall be held, by a period not exceeding three months.
VALID GROUNDS FOR ANNUAL GENERAL MEETING EXTENSION (AGM)
THE SPECIAL REASONS FOR THE EXTENSION COULD BE:-
- Non-signing of financial statements due to non-availability of Auditors due to resignation, death, incapacity to sign or such other reason.
- Non- readiness of financial statements due to any other valid reason.
- Non-signing of financial statements by the Managing Director due to non-availability of a Managing Director.
- Non- availability of Director.
- The sudden death of Directors, and due to this limit of directors goes below the minimum requirements of directors.
- Lockdown due to Covid-19.
- Such other valid and justified reasons.
DOCUMENTS REQUIRED
- List of Directors
- List of Shareholders
- Last Year Turnover
- Board Resolution
- Request Application with a valid reason
EXTENSION OF ANNUAL GENERAL MEETING (AGM) PROCESS
As per Section 96(1), if a company wants to get an extension for holding of AGM after the due date, such Company have to follow the below-mentioned process:
- The Director of a company shall hold a meeting of the Board of Directors for which notice must be sent at least 7 days before the meeting.
- To convene a board meeting on a specified date.
- Pass a resolution for extension of time limit for AGM specifying the reason for the extension of AGM.
- To file an application to the Registrar of companies in Form No- GNL1.
- In GNL-1, the reason for not holding AGM along with necessary information to be provided.
- To attach the copy of the Board resolution in E form GNL-1.
- Follow up with the office of the registrar of the company.
- The registrar shall examine the application and may grant an extension if satisfied.
- To obtain the certificate of the grant of extension in holding AGM of a company.
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