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Three reasons: why can agm be held on sunday

Others 2895 views 1 replies

CA Nitesh Kumar More

Chartered Accountant

4355 Points Posted on 30 April 2013

1) Sunday is not a public holiday. Sunday had not been notified by Central Government as Public holiday. What is there in the Negotiable Instrument Act is least important for Companies Act, 1956. Even, Companies Bill, 2012 specifically mentioned that AGM can’t be held on a National Holiday notified by Central Government.

2) Attention is invited to letter no 8/5/1669/65-PR dated 21-1-1963, which does not make it absolute compulsory for every company to held AGM on a day which is not a public holiday. Kindly refer proviso 2 to sec 166, which enables a company to fix time and date of AGM. Companies which followed the procedure prescribed by proviso 2 to sec 166 can held AGM on Sunday.

3) For adjourned AGM, there is separate circular, which enables to hold adjourned AGM on Sunday too.

CA Nitesh More

9883157484

Replies (1)

P C Agrawal

Registered independent director Past Ch

8229 Points Posted on 21 May 2013

While I agree with your point No.2 pertaining to proviso to Sec.166(2) and point No.3 pertaining to adjourned meeting, I do not agree for point No.1 pertaining to 'public holiday'.

Section 2(38) of Companies Act clearly states: 'public holiday' means a public holiday within the meaning of the Negotiable Instruments Act 1881. Explanation to Section 25 of Negotiable Instruments Act states that public holiday includes Sundays and any other day declared by the Central Govt by notification in the Official Gazette.

Thanks