A company is an artificial personality who has a separate legal entity different from its members. Hence, all the affairs are done by the Board of Directors. The board of directors is liable to provide the overall roadmap within its limited power for the progress of a company. There are certain powers in the hands of the boards after getting the consent of the company at their general meeting. The control of proceeding the meeting is on the shareholders of the company as an owner of the company. The Annual General Meeting provides them the opportunity to avail regarding the condition of the company and also make the suggestion for its improvement and progress. In this article, we will discuss the Annual General Meeting as per Companies Act 2013.
Annual General Meeting as per companies Act 2013
There is a provision as per companies act 2013 under section 96 which are as follows:
- Except for One person company, Every company must hold a General Meeting each year apart from the other meetings as Annual General Meeting (AGM).
- Every company must have a setup of managing committee to run its smooth working of managerial works.
- Except One person company (OPC) must have a hold in addition to other meetings by giving a notice regarding the meeting. But it should not be more than 15 months in between the date of AGM to the next.
- A company can hold its first Annual General Meeting within the period of 9 months from the closing of its first financial year. It can also conduct AGM within the period of 6 Months. There is no need to call an AGM in the year of its Company incorporation if a company hold its meeting as per above. However, there is an extension for a period within any AGM shall be held [not exceeding 3 months under section 96(1)]
- The Annual General Meeting shall be called during the business hours i.e 9 am to 6 pm on any day. But, not on a national day declared by the central government. Moreover, it shall have the I registered office in any place within the city/village/town in which the registered office is situated.
- As prescribed under section 129(2), Every AGM board of directors of the company shall lay before the meeting financial statement for the financial year.
- In addition, under section 129(3), it has been prescribed that if the company has one or more subsidiaries then they have to prepare the statement under section 129(2) a consolidated financial statement and of all subsidiaries in the same format.
- There is no provision for extension of I AGM rather in other cases it can be extended for the period of 3 months by ROC. However, if AGM of such type will not be held then NCLT can order holding of General Meeting under section 97 of the act. The electronically submission of Form no. 61 for the extension will not be accepted.
- After ending the financial year, all the auditing processes must be somehow completed within 3-4 months. But the AGM must be held within 6 months from the closing of the financial year. The notice of 21 days will be sent to all members so that the audited accounts and various types of directors report can be closed on 31 March.
Read more: Loans to Directors
Our experts are also available for providing you the best advice related to any legal issue. Give us a call at 8750008585 and send your query on Email: [email protected]