AGM related query

Section 166 provides that every company must hold annual general meeting in addition to any other meetings at stipulated intervals specifying the meetings as such in the notice calling the meeting. The first annual general meeting of a company may, however, be held within 18 months of incorporation, and so long as the company hold its first annual general meeting within that period, the company need not hold any general meeting in the year of incorporation or in the following year [first proviso to Section 166 (1)]. This provision is intended to enable the company to make its first set up financial reports covering a longer period than what it wishes to be its financial year on cases where the first date of such year does not correspond with the date of its incorporation and present then in time for the first annual general meeting. The second proviso to Section 166(1) states that the Registrar of Companies may, for any special reason, extend the time within which any annual general meeting (not being the first annual general meeting) shall be held, by a period not exceeding three months. If the Registrar grants such extension of time, a company may not, in some cases, hold the annual general meeting in a particular year. For example, if the company was to hold its annual general meeting by the latest on 31st December of a particular year and the company had obtained an extension of time for holding the annual general meeting, the meeting could be held only in the following year. According to the clarification given by the Company Law Board/Tribunal, the Registrar and grant extension of time for special reasons up to the maximum limit of 3 months, even if such extension allows the company to hold its annual general meeting beyond the calendar year.

 

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