Those AGMs that are still held are generally used to appoint company auditors and ‘lay before’ shareholders a copy of the last years’ accounts. Shareholders are not asked to approve the accounts – they are merely provided with a copy – although they can ask questions on matters in the accounts.

Can financials be approved in EGM?

Yes: As per the proviso to Section 137(1) of the Act, 2013, where the financial statements under sub-section (1) are not adopted at annual general meeting or adjourned annual general meeting, such unadopted financial statements along with the required documents under sub-section (1) shall be filed with the Registrar …

Can AGM be held without accounts?

You could hold the annual general meeting without laying the accounts, then lay the accounts later at a general meeting. Accounts are normally laid at an AGM (if they are laid), but subject to anything to the contrary in the articles it is permitted to lay them at a general meeting.

Can AGM be held outside registered office?

The meeting can be held at any place which is within the limits of the city or town or village in which the registered office is situated. A government company can also hold its AGM at any other place as the Central Government may approve.

How many days notice do you have to give for an AGM?

Private company: A private company can hold an AGM by giving notice of at least 14 days to its members. The company’s articles of association may require a longer period of notice. Non-traded public company: A public company (that is not a traded company) can hold an AGM by giving 21 days’ notice to its members.

What is the purpose of AGM meeting?

An annual general meeting, or annual shareholder meeting, is primarily held to allow shareholders to vote on both company issues and the selection of the company’s board of directors. In large companies, this meeting is typically the only time during the year when shareholders and executives interact.

What if accounts are not adopted in AGM?

First proviso to sub-section (1) of section 137 provides that when financial statements are not adopted in annual general meeting or at an adjourned annual general meeting, such unadopted financial statements together with documents which are required to be annexed to the financial statement shall be filed with the …

Can AGM be adjourned?

It is pertinent to note that there is no other provision under the Act, 2013 which provides any circumstances under which AGM should be adjourned. However, in practical, there may be more situations for which AGM can be adjourned. Further, the Board may also adjourn AGM to conduct the necessary business.

Can an AGM be held electronically?

Some companies have held hybrid meetings with shareholders able to participate and vote electronically. Other companies have allowed shareholders virtual engagement with the AGM, for example livestreaming the meeting or having a virtual Q&A with the board.

What is the main purpose of an AGM?

What are the rules for an AGM and EGM?

Before an AGM or EGM is convened, the constitution of the company and the Companies Act 2014 should be reviewed to establish the meeting rules for that company or company type. Section 175 provides a company is required to hold an Annual General Meeting in each year and not more than 15 months shall elapse between AGM’s.

How often does a company have to hold an AGM?

AGM’s Section 175 provides a company is required to hold an Annual General Meeting in each year and not more than 15 months shall elapse between AGM’s. The first AGM must hold its first AGM within 18 months of incorporation.

Can a director of a company convene an EGM?

The directors may, whenever they think fit, convene an EGM. Sec 178 provides that one or more members holding, or together holding, at any time not less than 50 per cent of the paid up share capital of the company, carries the right of voting at general meetings of the company may convene an EGM.

What was the draft AGM resolution for adoption of annual accounts?

“RESOLVED that, the audited Balance Sheet as at 31st March, 20XX and the Statement of Profit and Loss for the year ended 31st March 20XX and the Directors’ Report and the Auditors’ Report thereon be and the same are hereby received and adopted.” Mr. ABC, member proposed the resolution to be passed. Mr. XYZ, member seconded the same.