Gap of AGM more than 15 months

Meetings 1796 views 6 replies

Muralidharan

Self Employed

1034 Points Joined December 2008

During the year 2007 a company had convened and held its AGM in the month of May 2007 (on 21.05.2007). For the current year (2008) the AGM should have been held on or before 20th August 2008. (within fifteen months from the date of previous AGM date).

By oversight the company has convened and held the AGM on 30th September 2008. The company has filed all the annual forms such as Form 23AC, Form 23ACA and Form 20B along with necessary enclosures with ROC / MCA. The company has also obtained a compliance certificate (u/s 383A of the ActT) and the same has also been filed with ROC (Form 66).

This is a clear violation of the provisions of the Companies Act, 1956, for not holding the AGM within the stipulated period.

Can anybody advise what is the remedy available for the company to overcome the violation.

with regards

Muralidharan

Replies (6)

CS Arpita Rajpurohit

Company Secretary

1111 Points Joined December 2008

even im interested to know...........coz i cant find any way out of this

Venkat Reddy

Company Secreatry in Employment

26 Points Joined December 2008

Hi.........

after seeing your question i have got a doubt, do the MCA portal accepted those 2 forms i.e., form 23AC and ACA and alos Compliance Certiifcate.

Pavan Jain S

Chartered Accountant

1575 Points Joined December 2008

If the AGM is not held within the period specified u/s 166 r.w. 210, every officer in default shall be liable to penalty which may extend to Rs. 50K plus Rs. 2500 for every day of continuing default. The period of default shall commence from the last date on which the AGM was ought to have been held.

In my opinion, you wait and watch whether ROC commences any proceedings against you. Alternatively, you can pay penalty on your own.

Deepak Sahni

CA in Practice

65 Points Joined August 2008

You have an option to revise your annual return

Jignesh

Practising Company Secretary

32 Points Joined July 2010

Hi Murli

I want to know whether the company in question is a private or public. If it is a private company you can file the revised 23AC, 23ACA and 20B (Show AGM date as 20th August, 2008 if the AGM is held on paper and not actually held). By this way you can save yourself from the penal provision and fine also. You just need to show an explanation as to why this revised forms are being filed. Just write there is some unintentional mistake in AGM date, hence the revised forms are being filed.

I hope this solve your problem.