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Due Date of an Annual General Meeting

Provisions regarding due date of AGM as per Section 96 of the Company Act, 2013:

Section 96(1):

Every private limited or limited company require conducting AGM every year. One person companies are exempted from holding an AGM. Meeting must be held within 6 months from the end of financial year also there should not be more than 15 months gap between two AGM of a company.

In case of first AGM- It must be held within 9 months from the end of its first FY. 

All company must hold an annual general meeting in every calendar year.

However, company may grant extension for holding AGM, maximum for 3 months.

The Special reasons for the extension could be:

1.                 Non-readiness of the financial statements due to natural calamity, due to loss of financial data, non-presence of members due to valid grounds.

2.                 Due to pandemic Like Covid-19, SARS etc.

3.                 Non-availability of directors on the valid grounds

4.                 The sudden death of Directors and consequence of this the limit of directors goes below the minimum requirements of directors i.e. 2 in case of Private limited and 3 in case of Public Limited.

5.                 Due to non-signing of financial statements due to non-availability of Auditors due to resignation, death, incapacity to sign or such other valid reason.

6.                 Merger or amalgamation.

7.                 Such other special reasons if such reasons are valid and justified.

Law Language->Provisions of Section 96(1) of the Companies Act, 2013-

Every company other than a One Person Company shall in each year hold in addition to any other meetings, a general meeting as its annual general meeting and shall specify the meeting as such in the notices calling it, and not more than fifteen months shall elapse between the date of one annual general meeting of a company and that of the next:

Provided that in case of the first annual general meeting, it shall be held within a period of nine months from the date of closing of the first financial year of the company and in any other case, within a period of six months, from the date of closing of the financial year :

Provided further that if a company holds its first annual general meeting as aforesaid, it shall not be necessary for the company to hold any annual general meeting in the year of its incorporation:

Provided also that 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.

 

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The contents of this article are solely for informational purpose. It does not constitute any professional advice. The author does not represent that the contents of the article are accurate or complete. Neither the Site/Blog 'Your Instasolv' and the author accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.


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