Board meeting

All the start-ups registering their business as a private limited company has to follow-up with the following compliances described below as per the provisions of Companies Act, 2013

: ·        Annual General Meeting (AGM)

There should be one AGM every year and there must be a maximum gap of 15 months between 2 AGMs. Approval of financial statements, declaration of dividends, the appointment of auditors, etc. are the principal objective for this meeting. The annual general meeting needs to be held in the city where the registered office of the company is located.

  ·        Board Meetings

The first board meeting of the Board of Directors should be held within 30 days of the incorporation of the company. There should be a minimum of two meetings one in each half calendar year. Plus, there should be a gap of at least 90 days between two meetings. Apart from that, four board meetings are supposed to be held every financial year such that the gap between two consecutive board meetings isn’t more than 120 days.

·        Appointment of Auditor (E-Form ADT-1)

The first Statutory Auditor is supposed to be appointed within 30 days of the company’s incorporation in the first board meeting. However, the subsequent auditors could be appointed for 5 years in AGM. Being an applicant, you need to file form ADT-1 for a 5-year appointment. After that, shareholder endorses the auditor every year in AGM, but there’s no need to file ADT-1.

·        File e-Form MGT-7

MGT-7 is an electronic form issued by the Ministry of Corporate Affairs (MCA) to all the companies to fill their annual return details. The Registrar of Companies (ROC) maintains this form via electronic mode and on the basis of the statement of accuracy provided by the company. Every company registered as the private limited company must file the form MGT-7 every year.

·        File e-Form AOC-4

Form AOC-4 is meant for filing the financial statements for each financial year with the Registrar of Companies. Generally, the main means of communication between the shareholders and the Board of Directors is through the financial statements. Hence, every company registered under the Companies Act, 2013 is supposed to file the form AOC-4.