AGM -

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 February 2010 A private limited company has not held its AGM on the due date because the accounts were not audited(AGM due date is 30-09-2008) but it wants to held it on 31-03-2010. Can it do so ?.
if not, what are the ways out ?.

What are the consequences for not holding AGM on the due date ?

Ankur Garg

Ankur Garg (Expert)

26 February 2010 If it is not possible to hold an annual general meeting by the due date in terms of section 166 and section 210, extension in time should be sought from the Registrar for holding the annual general meeting. The main reason for seeking extension in time may be delay in finalising the accounts due to unavoidable circumstances.

In such situation the best course for a company is to hold the annual general meeting by the due date and get approval of members for reappointment of directors in place of those retiring by rotation and on other matters if any may be taken. As the annual accounts are not ready, the said meeting may be adjourned to a date not exceeding three months up to which the Registrar can grant extension in time.

Ankur Garg

Ankur Garg (Expert)

26 February 2010 Prosecution and penalty for non-compliance

Section 168 contains penal provision for not complying with the provisions of section 166 or 167. It provides that if default is committed in holding the annual general meeting of the company, the company and every officer of the company who is in default shall be punishable with fine which may extend to Rs. 50,000 and if the default is continuing one then with further fine extending upto Rs. 2,500 for every day after the first day during which the default continues.

Penalty under section 210(5) also applicable.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now