A person is required to be a shareholder of a company:
at the last date of the financial year OR
on the record date (i.e. the date of the AGM)?
Eg: A company is having an AGM on 25th July for the financial year 2012-13. If Mr.X was not the shareholder on 31st March 2013 but buys the shares today, then can he attend the AGM?
A person should prurcahse the shares on any day before the closing of Books by the Company for the relevant AGM.
Thanx
Poonam
Ok, now it makes perfect sense to take the date to sending the notice.
Thanks a lot for the help.
As far as sending of notice for AGM by the company is concerned, notice has to be sent to the members on the date of sending the notice as per Section 172(2)(i) of the Act. However, any person who is a member on the date of AGM can attend the same. This is evident from many provisions of the Act. For example, Section 174 provides that specified number of members personally present will form a quorum for the meeting. It does not specify that he should be a member on the date of despatch of the notice.
If a private company having only two shareholders sends notice for AGM and thereafter all share are transferred to new members. Can the old shareholders attend the AGM even though they are not members on the date of AGM? Answer is NO.
CAclubindia
