Adjournment of AGM for the non finalization of Accounts

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CS Ashish Jain (Querist)
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04 August 2010 In case if books of accounts can not be finalized before the 30th September, can we hold the AGM to comply with the provisions of section 166 of the Companies Act, 1956 and adjourn it due to non finalization accounts get it approved in the adjourn meeting.

Ankur Garg

Ankur Garg (Expert)
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04 August 2010 Extension for holding AGM may be granted by the ROC for special reasons. Application for the same must be filed before the expiry of due date as per section 166 read with section 210.

But non-finalization for accounts is not a sufficient ground for extension. So you must hold your AGM with in time --- and execute all agenda items except adoption of accounts and adjourned the AGM. After finalization of accounts adopt the same in adjourned AGM.

But this adjourned AGM should also be held with I statutory time limit. Refer any good law book to know more.

Regards

sivadas chettoor

sivadas chettoor (Expert)
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09 January 2011 It may be noted that normally the ROC shall not consider non-finalisation as a ground for extention of AGM (press note dated 29-01-1959). Please also refer to the Division bench decision of the Calcutta High Court in Benoy kumar's case where in the law relating to the status of adjourned AGM is discussed.
The adjourned meeting shold be held within the statutory time limit.

siva208@yahoo.com

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