Pursuant to section 166, every company like private company or public company shall hold during every year a general meeting of members which shall be called an annual general meeting in the notice calling it. It is mandatory on every company to hold an annual general meeting every year. Besides the annual general meeting, a company is free to hold one or more general meetings of its members. Such general meetings are stated as extraordinary general meetings on their registration statements.
First annual general meeting
When a new company is registered under the act, such a company shall hold its first annual general meeting latest within a period of 18 months from the date of its registration, namely, the date on which the registrar has issued the certificate of registration to the company. When the first annual general meeting is so held, it is not necessary for the company to hold an annual general meeting in the year of its registration or in the following year.
It may also be noted in this connection that the accounts placed before the first annual general meeting shall be for the period of beginning from the date of registration and ending on a day which will not precede the first annual general meeting by more than nine months.
Second and subsequent annual general meeting
It shall be held in the third year of registration and the exact date by which the said meeting is to be held will have to be decided by taking into account the provisions of section 210 as explained hereafter.
Statutory provision regarding annual general meeting
As mentioned above, every company shall hold every year an annual general meeting and ordinarily there shall not be a gap of more than 15 months between two such meetings.
Extension in time for holding annual general meeting
No extension in time for holding the first annual general meeting is possible. But the Roc has the power to grant extension in time up to 3 months for holding an annual general meeting other than the first.
Time when the registrar may be approached for getting extension
When it becomes certain that it will not be possible for a company to hold the annual general meeting within six months from the conclusion of the financial year. The company should make an application to the registrar at least 30 days before the due date for holding the said meeting.
Place of holding annual general meeting
The annual meeting is take place in the registration office or village where the registered office is situated. Due to rapid urbanization the municipal limits of certain cities and towns tend to be extended and in that case the municipal limits which are followed under the companies act and the postal limits may not coincide.
Time for holding an annual general meeting
Sub-section (2) of section 166 provides that an annual general meeting shall be called for a time during business hours.
Time and place for holding agm in a private limited company
Clause(b) of the second proviso under section 166(2) allows that a private limited company, which is not subsidiary of a public limited company, may by a resolution passed at the meeting.
Time prescribed in section 166 may be exceeded in the foregoing circumstance
In situations like the foregoing when it is beyond the control of the company or companies to comply with the act and hold the AGMs within time or extended time allowed under the act 1956. The solution in holding the AGM on or before the due date or extended date for considering part of the business registration and getting the remaining business transacted at the adjourned meeting seems to be bonafide and appears to have good support although in this process, which has legal ramifications, the provisions of section 166 and other sections cannot be fully compiled with.
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