private company_length of notice

Meetings 4702 views 8 replies

Dear Members,

In which section it written that in private company 21 days provison for length of notice of RGM is not applicable. I mmean watever days written in the AOA will suffice..

i m rili getting confuse d regarding teh length of notice for EGM of Private Company..

Please tell me the Section also where it is written

 

regards,

Mayuri Lal

Replies (8)

Hi..

Please read section 171 of the Companies Act, 1956 which is applicable to both Private and Public Limited Companies.

However, a GM may be called at a shorter notice, after complying with the provisions of section 171(2) of the Companies Act, 1956

God Bless

Udit Sharma

Dear Mayuri,

21 days provision is applicable to both public or pvt co. But, if you want to give shoter notice for EGM then members holding 95% of the paid up capital must give their assent for the shorter notice of EGM and in case of AGM 100% must give their assent for calling AGM by giving shorter notice.


i hope ur doubt is clear nw n if u ve ny further query feel free to ask

hI

 

170 to 186 The provisions of these sections relating to general meetings, unless the provisions of any section are expressly made applicable by the company’s articles, do not apply to such a private company to the extent to which the company makes its own provisions by its articles. Relaxation in the length of Notice for calling General Meeting, contents and manner of Service of Notices, Explanatory Statements, Quorum for meeting, Chairman of meeting, Restrictions of voting rights etc. to the extent to which the company makes its own provisions by its articles..

hI,,

bUT Y DO I NEED TO GET SHORTER NOTICE NOTICE..IN MY aoa ITS WRITTEN 7 DAYS NOTICE FOR egm...

so it means that if i wanna call EGM less than 7 days then i need shorter notice rite???

 

n  here 21 days is nop where in the picture rite????

 

correct me if i m wrong

Yes, you are right.........if you want to call EGM for a period shorter than 7 days then only you need to take approval otherwise no need. In case of pvt. co. articles can provide for a shorter term for serving the notice.
 

As informed by Manyuri Lal Sections 171 to 196 apply to general meetings of a public company and of a private company which is a subsidiary of a public company and not to private companies.

Hence Section 171 specifying 21 days notice is not applicable to private company. If the article contains 7 days notice then 7 days notice is to be given. Notice lesser than 7 days will be subject to consent for shorter notice by all the members in case of AGM and in the case of EGM, consent by members holding not less than 95% of paid up capital or 95% of the total voting power, as the case may be.

Provision of sec 53 has also be complied and the date of the meeting & Date of dispach has to excluded while calculating the period of notice.


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