{"id":37565,"date":"2022-06-11T15:36:49","date_gmt":"2022-06-11T10:06:49","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=37565"},"modified":"2024-06-03T11:45:18","modified_gmt":"2024-06-03T06:15:18","slug":"annual-general-meeting-under-companies-act-2013","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/annual-general-meeting-under-companies-act-2013\/","title":{"rendered":"Annual General Meeting (AGM) Under Companies Act, 2013"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-37572 size-full\" title=\"Annual General Meeting Under Companies Act 2013\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/06\/Annual-General-Meeting-AGM-Under-Companies-Act-2013-1.png\" alt=\"Annual General Meeting Under Companies Act 2013\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/06\/Annual-General-Meeting-AGM-Under-Companies-Act-2013-1.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/06\/Annual-General-Meeting-AGM-Under-Companies-Act-2013-1-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/06\/Annual-General-Meeting-AGM-Under-Companies-Act-2013-1-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/06\/Annual-General-Meeting-AGM-Under-Companies-Act-2013-1-615x323.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/06\/Annual-General-Meeting-AGM-Under-Companies-Act-2013-1-400x210.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/06\/Annual-General-Meeting-AGM-Under-Companies-Act-2013-1-292x153.png 292w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Annual General Meeting (AGM) is held to facilitate cooperation between the management and the shareholders of the company. It is compulsory under the Companies Act, 2013 to hold an annual general meeting (AGM) to discuss the annual results, the appointment of an auditor, and other discussions. The Company must follow the procedures under the Companies Act, 2013 to conduct an AGM. This article provides an insight into the Annual General Meeting (AGM) under the Companies Act, 2013.\u00a0<\/span><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\">\n<p style=\"text-align: justify;\"><b>Table of Contents<\/b><\/p>\n<ul>\n<li><a href=\"#Companies\"><span style=\"font-weight: 400;\">Companies to hold an AGM<\/span><\/a><\/li>\n<li><a href=\"#Procedure\"><span style=\"font-weight: 400;\">Procedure for an AGM<\/span><\/a><\/li>\n<li><a href=\"#What\"><span style=\"font-weight: 400;\">What is the AGM Agenda?<\/span><\/a><\/li>\n<li><a href=\"#Quorum\"><span style=\"font-weight: 400;\">Quorum of AGM\u00a0<\/span><\/a><\/li>\n<li><a href=\"#AGM\"><span style=\"font-weight: 400;\">AGM Minutes\u00a0<\/span><\/a><\/li>\n<li><a href=\"#Consequences\"><span style=\"font-weight: 400;\">Consequences and failure to hold an AGM\u00a0<\/span><\/a><\/li>\n<li><a href=\"#Final\"><span style=\"font-weight: 400;\">Final words<\/span><\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"Companies\" style=\"text-align: justify;\"><b>Companies to hold an AGM<\/b><\/h2>\n<p id=\"Procedure\" style=\"text-align: justify;\"><span style=\"font-weight: 400;\">All companies except <a href=\"https:\/\/www.cagmc.com\/one-person-company\/\" target=\"_blank\" rel=\"noopener\">one person company (OPC)<\/a> must hold an AGM at the end of each financial year. The company must hold its AGM within six months from the end of the financial year.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">However, in the case of the first general meeting of the year, the company may hold an AGM less than nine months from the end of the first financial year. In such cases where the first AGM has already been held, there is no need to hold any AGM in the year of establishment. It is important to note that the time gap between the two annual general meetings should not be more than 15 months.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><b>Procedure for an AGM<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The company must give a clear 21-day notice to its members for convening an AGM. The notice must state the place, date of the meeting, and the time the meeting is scheduled. The notice must also specify the business to be conducted at the AGM. The company must send the AGM notice to:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">All members of the company include their legal representative of the deceased member and assignee of an insolvent member.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company&#8217;s official auditor.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">All directors of the company.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The notice may be given in writing by express mail or by registered mail or in electronic mode. The notice must be sent to the member&#8217;s address according to company records.<\/span><\/p>\n<p id=\"What\" style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In the case of electronic communication, notice must be sent to the member&#8217;s email address according to company records. The notification can be written via email or email attachment. Notice of AGM should be posted on the company website or any other website as the government may specify. An AGM may be convened during the short notice period rather than 21 days if at least 95% of the members have the right to vote at a meeting in favor of the short notice. Permission can be granted in writing or electronic mode.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><b>What is the AGM Agenda?<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Topics discussed or businesses at the AGM contain:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consideration and acceptance of audited financial statements.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Review the Director&#8217;s and auditor&#8217;s reports.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dividend declaration to shareholders.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Appointment of directors to replace retired directors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Auditors\u2019 appointment and remuneration determination.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Apart from the above common business, any other business can be operated as a specialized corporate business.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The general business of the company will be passed by a general decision when the votes are cast in favor of more votes against the decision.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">However, in the event of a special business, the decision may be passed as a general decision or a special decision, depending on the applicable legal provisions. A special resolution requires at least 75% of the votes in favor of the decision.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The AGM should be held during business hours between 9 a.m. and 6 p.m. only. The meeting can be held on any day, other than a national holiday, including holidays declared by the Central Government. The meeting may be held at any place within the limits of the city or town or village where the registered office is located.<\/span><\/p>\n<p id=\"Quorum\" style=\"text-align: justify;\"><span style=\"font-weight: 400;\">A state-owned company may also hold its AGM at any other location as the<a href=\"https:\/\/en.wikipedia.org\/wiki\/Central_government\" target=\"_blank\" rel=\"noopener\"> Central Government<\/a> may approve. An unlisted company can hold an AGM anywhere in India after obtaining approval from its members in writing or electronic mode. In the case of a Section 8 company, the Board determines the date, time, and place of the AGM by the instructions given at the company&#8217;s general meeting.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><b>Quorum of AGM\u00a0<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In the case of a private company, the AGM quorum comprises:\u00a0<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Two members at the meeting to be present.\u00a0<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In the case of a public company, the AGM quorum says:\u00a0<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Five members are present at a meeting if the number of members is within one thousand.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fifteen members are present at the meeting when the number of members exceeds 1,000 but only between 5,000.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Thirty members are present at the meeting when the number of members exceeds 5,000.\u00a0<\/span><\/li>\n<\/ul>\n<p id=\"AGM\" style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If the meeting number is not within half an hour from the scheduled time, the meeting will be postponed to the same day of the following week at the same time and place.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><b>AGM Minutes\u00a0<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Minutes means an official written record, physical or electronic form of the proceedings of a Meeting. Minutes Book means a book kept in electronic or physical format for recording Minutes.\u00a0<\/span><\/p>\n<p id=\"Consequences\" style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The minutes of the AGM must be prepared by every company compulsory. Minutes of the AGM constitute a written record of the proceedings of the consecutive meeting and resolutions passed at the AGM. The Company Secretary or any other person duly authorized by the Board or Chairman shall record the proceedings of the AGM. Minutes must be initiated and signed and entered in the minutes register within 30 days from the AGM. The Minutes Book will be kept at the <a href=\"https:\/\/www.cagmc.com\/company-registration-in-jaipur\/\">Company Registration<\/a> Office or another place approved by the Board. Any member\/shareholder of the company, if requested to do so by the company, may inspect the AGM Minute Book at a fixed fee.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><b>Consequences and failure to hold an AGM\u00a0<\/b><\/h2>\n<p id=\"Final\" style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If a company fails to hold an AGM within a specified period or extension received by it, the Tribunal itself or at the request of any director or member shall direct the AGM to comply with its directives. If a company continues to fail to hold a meeting following Tribunal directives, each company and every company official who commits an offense will be fined up to Rs 1 lakh. In the case of a default, a fine of Rs 5,000 per day is charged each day where the default continues.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><b>Final words<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Registrar of Companies may extend the current period of holding the AGM by three months. The company must apply for an extension on the form GNL-1 stating the reasons for the expansion and when the company needs to be expanded. The RoC will record the reasons for the extension. However, there is no extension of time available to hold the first annual convention.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The annual general meeting is mandatory compliance with Indian companies. In addition, companies that do not hold or maintain an AGM are liable for legal action against them. In addition, at least five members of the <a href=\"https:\/\/www.cagmc.com\/public-company\/\">Public Limited Company<\/a> and two members of the <a href=\"https:\/\/www.cagmc.com\/private-limited-company\/\">Private Limited Company<\/a> must personally attend the AGM. Also, the Companies Act specifies the time to hold an AGM during working hours and on a day other than a National Holiday.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Annual General Meeting (AGM) is held to facilitate cooperation between the management and the shareholders of the company. It [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":37572,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[88],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Annual General Meeting Under Companies Act 2013 - CAGMC<\/title>\n<meta name=\"description\" content=\"Latest Guide on Annual General Meeting Under Companies Act 2013. 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