Company to hold annual general meeting every year (Sec. 166) Every company shall in each year hold, in addition to any other meetings, a general meeting as its annual general meeting and shall specify the meeting as such in the notice calling it.
Annual General Meeting (Secs. 166 and 167):
Company to hold annual general meeting every year (Sec. 166) Every
company shall in each year hold, in addition to any other meetings, a general
meeting as its annual general meeting and shall specify the meeting as such in
the notice calling it. There shall not be an interval of more than 15 months
between one annual general meeting and the another. But the first annual
general meeting should be held within a period of 18 months from the date of
its incorporation.
The Registrar may, for any
special reason, extend the time for holding any annual general meeting by a
period not exceeding 3 months. But no extension of time is granted for holding
the first annual general meeting. Every annual general meeting shall be called
during business hours on a day that is not a public holiday. It shall be held
either at the registered office of the company or at some other place within
the city, town or village in which the registered office of the company is
situated. As regards holding of the annual general meeting, no distinction is
made between a public company and a private company.
21 days’ notice (Sec.171): A
general meeting of a company may be called by giving not less than 21 days’
notice in writing. Annual general meeting is a statutory requirement: The
annual general meeting of a company is a statutory requirement. It has to be
called even where the company did not function during the year. Canceling
or postponing of convened meeting: Where an annual general meeting is convened
for a particular date and notice is issued to the members, the Board of
Directors can cancel or postpone the holding of the meeting on that date
provided power is exercised for bona fide and proper reasons.
Canceling of failure to hold
annual general meeting: If a company fails to hold an annual general meeting;
1. Any member can apply, under Sec.
167, to the Company Law Board for calling the meeting.2. The company and every officer who
is in default shall be punishable with fine.
Tags : Business Environment and Law-Meetings And Resolutions
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