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Notice of agm

Nishchal Khwaunju (.) (115 Points)

14 March 2013

Is it mandatory to give notice of AGM in newspaper for the public company?

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4 Replies

Siddarth R Sunder Ram (Finance Professional) (230 Points)
Replied 14 March 2013

Not necessary. If it is sent to shareholders atleast 21 days before date of AGM, that should be sufficient

1 Like

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 14 March 2013

Agree with learned member as there is no need to give notice of AGM in newspaper for the public company. The same is not required by law. However you need to comply with the time line of 21 days as given in section 171 read with section 53.

Revert if there is any doubt.

Thanks

Shankar BA(Hons) (CS) (278 Points)
Replied 15 March 2013

Mr.Nishchal,

As Mr.Sunder & CS.Mr.Ankur Garg said it is not necessary as per law and Indian Companies Act, 1956. But practically there are two instances.

1) Unlisted Public Limited Company:

Case one: With Shareholders of Close family & friends. Then notice before 21 days can be sent.

Case Two: With Shareholders other than family or friends. Then notice before 21 days and if possible through e-mails or website hosting (if they have).

2) Listed Public Limited Company:

Case one: 21 days notice compulsoryily

Case two: Website hosting (if they have one)

Case three: Publishing in leading newspapers would be advisable as some scruplous shareholders might create trouble.

Am mentioning this as I encountered the same instance in three AGM of Public Limited Companys.

But updation of contact details is must.

Siddarth R Sunder Ram (Finance Professional) (230 Points)
Replied 15 March 2013

Couple of points that may be worthy of noting (in case of listed companies):

- Listed companies employ the practice of sending the notice along with / as a part of the annual report circulated to the shareholders, which in any case has to be circulated atleast 21 days before the AGM, since the annual report contain the audited financials, audit report, directors' report etc.

- Listed companies are also required to inform SEBI / stock exchange in advance about the date of the AGM / Board meetings in advance and this information is publicly available.