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Directors refusing to conduct AGM and file documents what action to be taken

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Nivas Vee

7 Points Posted on 17 July 2022

I'm a Director in a Startup Private Limited company. We have 3 Directors the other two along with auditor appointed by them are refusing to conduct a AGM and do basic compliance.

Read somewhere all three directors are liable to be prosecuted for non-compliance.

Inorder to protect my interest I would like to intimate this to MCA & Income tax(if necessary). Can someone advise me on what needs to be done in this case ?

Replies (2)

Quick Summary

A director in a private limited startup is facing a situation where the other two directors and their appointed auditor are refusing to hold an Annual General Meeting (AGM) and complete necessary compliance filings. The director is concerned about personal liability for non-compliance and seeks advice on how to report this to the MCA and Income Tax authorities to protect their interests. The refusal to hold an AGM has been ongoing for the past two financial years, with the last one held in 2020.

CA Dhruva Kalamanji

Chartered Accountant

1996 Points Posted on 17 July 2022

Dear Nivas

Your understanding is correct , all the three directors are responsible for non compliance.

Do let me know for which financials year they are refusing to conduct AGM.

Also deep dive discussion on this matter you can contact me at sthayin @ gmail