Annual General Meeting

[CA Akash Phophalia]

Meaning – General Meeting

A company has separate legal identity. The affairs of the company are controlled by its board of directors. Certain powers of board of directors are executed after getting consent from its members. The matters discussed and concluded by board and members in their respective meetings. The meetings in which shareholders control the proceeding are termed as “General Meeting”.

Types of General Meeting

General meeting is of two types:-

• Annual General Meeting
• Extraordinary General Meeting

Annual General Meeting (AGM)

Annual General Meeting is a mandatory meeting which is to be conducted annually by every company except One Person Company (OPC). The proceedings of AGM are controlled by shareholders. The businesses transacted at AGM are:-

• Ordinary Business:-
  • Consideration of Financial Statements and reports of Board of Directors and Auditors.
  • Declaration of Dividend
  • Appointment of Directors in place of retiring one.
  • Appointment of and fixation of the remuneration of the auditors. 

• Special Business – Apart from the aforesaid businesses, rest are deemed to be special one.

Time period of Annual General meeting

A company which is incorporated under Companies Act, 2013 is required to hold its first annual general meeting within period of 9 months from the date of closing of first financial statements. If its first AGM held so, it is not mandatory for the company to hold its AGM in the year of incorporation.

The subsequent meetings are to be conducted within period of 6 months from the date of closing of financial statements. The gap between the dates of two AGMs should not be more than 15 months. All the conditions are cumulative.

The Registrar has power to extend the time of holding AGM not more than by 3 months, for special reasons. Such extension is not allowed for first Annual General Meeting.

Day, Time and Place

Every annual general meeting shall be called during business hours i.e between 9:00 A.M and 6:00 P.M. It can be held on any day except National Holiday, where “National Holiday” means and includes a day declared as National Holiday by Central Government. The AGM can be conducted at either registered office of the company or at some other place within the city, town or village in which the registered office of the company is situated.

This is brief and basic feature of AGM.

This is just for your reference. It does not constitute our professional advice or recommendation.

CS Kanika Lohiya

kphophalia14@gmail.com

C/o CA Akash Phophalia

Office No 3

Second Floor

Amrit Kalash

Residency Road

Near Bombay Motor Circle

Jodhpur – 342001

Rajasthan