Holding of agm on a public holiday

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Vamsee Krishna (Querist)
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28 November 2011 what are the consequences if an agm is held on a public holiday. notice was issued by oversight. no time to amend the notification now.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 November 2011 Annual General Meeting cannot be held on a public holiday. Section 166(2) inter alia states that every annual general meeting shall be called on a day, which is not a public holiday.

It has been clarified by the Department (MCA) vide Circular F. No. 8/23/(166 /69-CL-V that section 166 of the Companies Act deals with the actual period during which the annual general meeting is to be held. Sub-section (2) states that every annual general meeting shall be held on a day that is not a public holiday and this provision is mandatory. If the provision of section 166(2) are to be considered as 'merely regulatory' as suggested "shall be called" used in the section will ceased to have any meaning.

But an Adjourned annual general meeting may be held on a public holiday.

The Department (MCA) has vide Circular File No. 8/16(1)/61-PR stated that there is no contravention of section 166(2) if the adjourned annual general meeting comes to be accidentally held on a public holiday.

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Charu Srivastava

Charu Srivastava (Expert)
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29 November 2011 Agree with the Expert.
The AGM can be held in any day other public Holiday.
As you inadvertently issued notice to the Shareholders of AGM On public Holiday.It is a default.
For this intimate the Shareholder through Newspaper
If your company is listed one then intimate through public announcement through stock exchange.
You have to rectify your default.
others views are solicited.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 November 2011 Convene a Board meeting thereby resolve to postpone the general meeting to a day other than a public holiday. Also give a public notice to share holders through news papers ,one in vernacular and the other in english language.

Vamsee Krishna

Vamsee Krishna (Querist)
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30 November 2011 Thanks for the views.

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