Scribd
Upload
51 views

Consequences For Not Holding AGM Within Time

Companies must hold their Annual General Meeting (AGM) within the statutory timeframe. If a company fails to hold its AGM by September 30th, 2022 without an extension from the Registrar of Companies (ROC), it will be considered non-compliant and must go through a compounding process. To seek an extension, a company must pass a board resolution specifying the reasons for delay and file application form GNL-1 along with the board resolution copy. Failure to hold the AGM within the specified time or to comply with any directions from authorities can result in fines of up to Rs. 1 lakh, plus additional daily fines of Rs. 5,000 for continued non-compliance.

Uploaded by

Vinod Yadav
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
51 views

Consequences For Not Holding AGM Within Time

Companies must hold their Annual General Meeting (AGM) within the statutory timeframe. If a company fails to hold its AGM by September 30th, 2022 without an extension from the Registrar of Companies (ROC), it will be considered non-compliant and must go through a compounding process. To seek an extension, a company must pass a board resolution specifying the reasons for delay and file application form GNL-1 along with the board resolution copy. Failure to hold the AGM within the specified time or to comply with any directions from authorities can result in fines of up to Rs. 1 lakh, plus additional daily fines of Rs. 5,000 for continued non-compliance.

Uploaded by

Vinod Yadav
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Consequences for not holding AGM within time and filing forms with ROC

AGM- Section 96 of the Companies Act, 2013


Every company other than a One Person Company, every company shall hold at least one
Annual General Meeting. But if the company could not hold that meeting then, the company
may apply to the Registrar for the extension of time for holding the AGM and the Registrar
may extend period not exceeding three months.
Consequences of not holding meeting till 30th September 2022
As per General Circular No. 2/2022, It has been allowed that the companies whose AGMs are
due in the year 2022, to conduct their AGMs on or before 31st December 2022 in accordance
with the requirements laid down in Para 3 and Para 4 of the General Circular No. 20/2020
dated 05.05.2020.
Para 3 and Para 4 of the General Circular No. 20/2020 dated 05.05.2020.
iv)Before sending the notices and copies of the financial statements, etc., the company must
give public notice in an English newspaper having a wide circulation in that district,
Vernacular newspaper in the principal vernacular language of the district in which the
registered office of the company is situated and specifying in the advertisement the following
information.
a) Statement that the AGM will be convened through VC or OI\VM in compliance with
applicable provisions of the Act read with this Circular.
b. The date and time of the AGM through VC or OAVM;
It has been clarified that this relaxation should not be construed as conferring any extension
of time for holding of AGMs by the companies under the Companies Act, 2013 and
companies which have not adhered to the relevant timelines shall be liable for legal action
under the appropriate provisions of the Act.
However, if the company does not hold its AGM till 30 th September 2022, without extension
for holding of AGM from ROC, then it shall be considered as non-compliance. Then, the
company will have to go for compounding.
Procedure for seeking extension of date for holding AGM of company
1) Call Board Meeting
2) Pass Board Resolution for seeking extension of date for holding AGM specifying the
reason for extension of company.
3) file an application to the Registrar of companies in Form No- GNL1.
4) In GNL-1, the reason for not holding AGM along with necessary information to be
provided and attach the Certified True copy of Board Resolution with it.
Penalty
If any default is made in holding a meeting of the company in accordance with Section
96 or section 97 or section 98 or in complying with any directions of the Tribunal,
the company and every officer of the company who is in default shall be punishable with fine
which may extend to one lakh rupees and in the case of a continuing default, with a further
fine which may extend to five thousand rupees for every day during which such default
continues.
Resolutions and Agreements to be filed – Rule 24 of the Chapter VII The Companies
(Management and Administration) Rules, 2014

You might also like