Time Limit for holding First Annual General Meeting (AGM) and Subsequent Annual General Meeting (AGM)-Indian Companies Act, 1956

As per Indian Companies Act, 1956 every company registered under the Act or any previous Acts or Laws, whether it is listed or not in any stock exchange, are required to hold Yearly Annual General Meeting (AGM). It is a mandatory requirement to hold AGM.

 

FIRST ANNUAL GENERAL MEETING (AGM) -TIME LIMIT
The first Annual General Meeting (AGM) of a newly incorporated company should be held within 18 months from the date of incorporation mentioned in the certificate of incorporation of the company.  If the company held such AGM within that period, it shall not be necessary for the company to hold any Annual General Meeting in the year of its incorporation or in the following year. But the company must comply with the provisions of Section 210 of the Indian Companies Act, 1956. 

Compliance of Section 210 of Indian Companies Act 1956
The following statements are required to present before the members by the Board of directors at every Annual General Meeting.


(a) Balance sheet as at the end of the period specified in sub-section (3), and
(b) a profit and loss account for that period, which shall relate in the case of the first annual general meeting of the company, to the period beginning with the incorporation of the company and ending with a day which shall not precede the day of the meeting by more than nine months.


Notice for Meeting and Quorum

The notice for the meeting should be served as per the provision of the act and sufficient quorum should be there in the meeting.


SUBSEQUENT ANNUAL GENERAL MEETINGS (AGM)- TIME LIMIT
To conduct subsequent Annual General Meetings Section 210 of the Indian Companies Act, 1956 is required to comply with.


The following statements are required to present before the members by the Board of directors at every Annual General Meeting.


(a) a balance sheet as at the end of the period specified in sub-section (3), and


(b) a profit and loss account for that period, which shall relate in the case of any subsequent annual general meeting of the company, to the period beginning with the day immediately after the period for which the account was last submitted and ending with a day which shall not precede the day of the meeting by more than six months, or in cases where an extension of time has been granted for holding the meeting under the second proviso to sub-section (1) of section 166, by more than six months and the extension so granted.


TIME GAP BETWEEN TWO ANNUAL GENERAL MEETINGS (AGM)
As per Sub-Section (1) of Section 166 of the Companies Act, 1956 the period between two Annual General Meetings shall not be more than (15) fifteen months.


The company may file application for approval to extend the period of holding the Annual General Meeting and the Registrar of Companies has power to extend the meeting for a period of 3 Months. The application should be made by filling form No. 62 attached with certified copy of resolution passed by Board of Directors.


But in case of First Annual General Meeting, the companies are not allowed to make application for extension of time. Therefore not holding of First Annual General Meeting will be a non-compliance of the Section 166 of the Companies Act, 1956 and the penal provisions are applicable.  

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