{"id":48359,"date":"2024-02-05T10:57:03","date_gmt":"2024-02-05T05:27:03","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=48359"},"modified":"2024-05-27T12:56:44","modified_gmt":"2024-05-27T07:26:44","slug":"agm-vs-egm","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/agm-vs-egm\/","title":{"rendered":"AGM vs EGM \u2013 Provisions, Penalties Under Companies Act, 2013"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-48363 size-full\" title=\"AGM vs EGM \u2013 Provisions, Penalties Under Companies Act, 2013\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2024\/01\/AGM-vs-EGM-\u2013-Provisions-Penalties-Under-Companies-Act-2013-1.png\" alt=\"AGM vs EGM \u2013 Provisions, Penalties Under Companies Act, 2013\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2024\/01\/AGM-vs-EGM-\u2013-Provisions-Penalties-Under-Companies-Act-2013-1.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2024\/01\/AGM-vs-EGM-\u2013-Provisions-Penalties-Under-Companies-Act-2013-1-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2024\/01\/AGM-vs-EGM-\u2013-Provisions-Penalties-Under-Companies-Act-2013-1-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2024\/01\/AGM-vs-EGM-\u2013-Provisions-Penalties-Under-Companies-Act-2013-1-615x323.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2024\/01\/AGM-vs-EGM-\u2013-Provisions-Penalties-Under-Companies-Act-2013-1-400x210.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2024\/01\/AGM-vs-EGM-\u2013-Provisions-Penalties-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;\">Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) are different types of meetings held by Companies under the provisions of the Companies Act, 2013. The AGMs are general annual meetings compulsory by the Companies Act is significant for both kinds of meetings and failure to comply may lead to legal consequences and penalties. In this article, we are exploring about the <\/span><b>AGM vs EGM<\/b><span style=\"font-weight: 400;\">, further discussed about the provisions, penalties, and examples under Companies Act, 2013.<\/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 Content<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li><a href=\"#do\">What do you mean by AGM and EGM?<\/a><\/li>\n<li><a href=\"#vs\">Difference between AGM vs EGM<\/a><\/li>\n<li><a href=\"#takeaway\">Takeaway<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"you\"><b>What do you mean by AGM and EGM?<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">AGM\u2019s full form is Annual General Meeting<\/span><span style=\"font-weight: 400;\">, which is a compulsory to gather a company\u2019s board of directors and shareholders annually. The AGM meeting offers an opportunity for shareholders to receive company\u2019s performance update, make significant decisions, and discuss key matters. It is discussed under section 96(1), of the Companies Act, 2013. Here is certain AGM\u2019s factor like:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Legal requirement;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Frequency;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shareholder participation;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Agenda means approval of election, financial statements or re-election of directors, declaration of dividends, auditor\u2019s appointment and any other key matters mentioned in the regulations and bylaws of the company.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Extraordinary General Meeting is abbreviated as EGM, which is a special meeting for a shareholder of the company. It is arranged outside the general schedule of annual meetings (AGMs). EGMs are arranged for a particular and urgent discussion or exceptional cases that cannot be waited till the next AGM. It is discussed under section 100 of the Companies Act, 2013. Its key aspects are:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Its purpose is to require immediate attention like amendment in <\/span><a href=\"https:\/\/www.cagmc.com\/moa-and-aoa-of-a-company-under-companies-act-2013\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Article of Association of the company<\/span><\/a><span style=\"font-weight: 400;\">, permission of key transactions or other critical matters;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The EGM\u2019s agenda is to focused on particular matters for that the meeting is called.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Full participation of shareholders.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rules and regulations are about to convening of EGM are generally designed in the AOA of the company.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Corporate decision making: AGM\/EGM<\/b><\/p>\n<h2 id=\"vs\"><b>Difference between AGM vs EGM\u00a0<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Here we are going to discuss about the <\/span><b>difference between AGM and EGM Companies Act, 2013<\/b><span style=\"font-weight: 400;\"> in a tabular form:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><b>Particulars<\/b><\/td>\n<td style=\"border: 1px solid #555;\"><b>Annual General Meeting under Companies Act, 2013<\/b><\/td>\n<td style=\"border: 1px solid #555;\"><a href=\"https:\/\/www.cagmc.com\/extraordinary-general-meeting-under-companies-act-2013\/\" target=\"_blank\" rel=\"noopener\"><b>Extraordinary General Meeting under Companies Act, 2013<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\"><span style=\"font-weight: 400;\">Provisions<\/span><\/td>\n<td style=\"border: 1px solid #555;\"><span style=\"font-weight: 400;\">The provision of AGM is discussed in section 96 of the <\/span><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/companies-act\/companies-act-2013.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Companies Act, 2013.<\/span><\/a><span style=\"font-weight: 400;\"> It must be conducted within six months from the end of financial year. In which discusses about the routine matters like declaration of dividends, financial statements, and elections of director.<\/span><\/td>\n<td style=\"border: 1px solid #555;\"><span style=\"font-weight: 400;\">Section 100 of the Companies Act, 2013 provided the provision for the EGMs.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\"><span style=\"font-weight: 400;\">Purpose<\/span><\/td>\n<td style=\"border: 1px solid #555;\"><span style=\"font-weight: 400;\">AGM\u2019s purpose is to regular annual meeting to discuss daily corporate works.<\/span><\/td>\n<td style=\"border: 1px solid #555;\"><span style=\"font-weight: 400;\">Its purpose is to conduct special meeting for exceptional and urgent cases outside the AGM schedule.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\"><span style=\"font-weight: 400;\">Penalties for Non-compliance<\/span><\/td>\n<td style=\"border: 1px solid #555;\"><span style=\"font-weight: 400;\">In case company cannot file the report after conclusion of AGM within 30 days, the company shall be liable to pay 1 lakh rupees.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Subsequent failure with additional penalty of 500 rupees for each day after 1<\/span><span style=\"font-weight: 400;\">st<\/span><span style=\"font-weight: 400;\"> time of that such failure continues that leads to maximum 5 lakh rupees and each company\u2019s officer who is in default must be liable to pay not less than 25,000 rupees. If subsequent failure, with additional penalty of 500 rupees for each day after which such failure continues, the need to pay maximum 1 lakh rupees.<\/span><\/td>\n<td style=\"border: 1px solid #555;\"><span style=\"font-weight: 400;\">In case any company\u2019s officer or company or any other person contradict with the company\u2019s provision and every offer of the company who is in default shall be liable to pay 10,000 rupees. Subsequent contravention, further lead to penalty of 1000 rupees for each day after the first at which the contravention continues, the penalty shall be maximum of rupees 2 lakh, if it is a company. Furthermore, in case of any officer then penalty will be 50,000 rupees.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\"><span style=\"font-weight: 400;\">Examples<\/span><\/td>\n<td style=\"border: 1px solid #555;\"><span style=\"font-weight: 400;\">XYZ company holds its AGM each year as per compliance with section 96, in which they discussed about the routine matters includes <\/span><a href=\"https:\/\/www.cagmc.com\/auditors-appointment-under-companies-act\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">auditors\u2019 appointment<\/span><\/a><span style=\"font-weight: 400;\">, financial reports, etc.<\/span><\/td>\n<td style=\"border: 1px solid #555;\"><span style=\"font-weight: 400;\">Mohandas Private Ltd. calls for an EGM to seek shareholder permission for merger cases, which is identified as urgent matter.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"takeaway\"><b>Takeaway<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In conclusion, AGMs are regular yearly meetings compulsory by the companies Act, 2013 to discuss the daily matters. On the other side EGMs are provided as requirement for urgent and exceptional cases. In these both types of meeting, the compliance with provisions to Companies Act, 2013 and failure in compliance made the companies to pay penalties and bear all legal consequences. It ensures the participation of shareholder, transparency, and accountability. <\/span><b>AGMs vs EGMs<\/b><span style=\"font-weight: 400;\"> are collectively involved in to formal decision making and potential governance within a company. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) are different types of meetings held by Companies under the provisions [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":48363,"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>AGM vs EGM \u2013 Provision, Penalties Under Companies Act- CAGMC<\/title>\n<meta name=\"description\" content=\"In this article, we are exploring about the AGM vs EGM, further discussed about the provisions, penalties, and examples under Companies Act.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cagmc.com\/blog\/agm-vs-egm\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AGM vs EGM \u2013 Provision, Penalties Under Companies Act- CAGMC\" \/>\n<meta property=\"og:description\" content=\"In this article, we are exploring about the AGM vs EGM, further discussed about the provisions, penalties, and examples under Companies Act.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.cagmc.com\/blog\/agm-vs-egm\/\" \/>\n<meta property=\"og:site_name\" content=\"Goyal Mangal &amp; 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