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Agm notice to shareholders outside india

YOGESH (assi. company secretary) (477 Points)

06 June 2013

IS IT MANDATORY TO SEND AGM NOTICE OR ANNUAL REPORT TO SHAREHOLDERS SITUATED OUTSIDE INDIA ????

THANKS......

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5 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 06 June 2013

Yes it is mandatory to send annual report to shareholders of the company subject to the provisions of Companies Act, 1956.

As per section 219 of the companies act, 1956, A copy of every balance sheet (including the profit and loss account, the auditors' report and every other document required by law (AGM Notice) to be annexed or attached, as the case may be, to the balance sheet) which is to be laid before a company in general meeting shall, not less than 21 days, before the date of the meeting, be sent to every member of the company.

However, provisions of Service of documents on members by company are governed by section 53 of the companies act, 1956. So as per section 53(1), A document may be served by a company on any member thereof either:

personally, or
by sending it by post to him to his registered address, or
if he has no registered address in India, to the address, if any, within India supplied by him to the company for the giving of notices to him.

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Vidisha Gupta (Company Secretary) (91 Points)
Replied 06 June 2013

Yes,Every Company is require to send notice atleast 21 days before the date of an AGM along with the copies of balance sheetg , auditor report and board report .In this date of AGM and date of sending Notice is Excluded. If it is send through Post with in 48 Hr. of posting it is deemed to have recd

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YOGESH (assi. company secretary) (477 Points)
Replied 07 June 2013

thank you very much Ankur sir and Vidhisha mem for your reply.

but my question is about. Notice to shareholders "OUTSIDE INDIA".

because section 53 of the company act only specify about ''Adress within india''.

Thank you,

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 07 June 2013

It is necessary to give General Meeting notice to all the shareholders at their usual address in India. However if you are not provided with Indian address of foreign shareholders and you do not want to send notice to their outside India address, then you can do one thing as per section 53(3). Simply publish a meeting notice in newspaper. Please read section 53(3) for better clarity.

Simply not sending notice to foreign shareholder is not done and may be questionable later.

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