{"id":105512,"date":"2022-01-11T17:55:54","date_gmt":"2022-01-11T12:25:54","guid":{"rendered":"https:\/\/legalwindow.in\/?p=105512"},"modified":"2022-01-11T18:22:14","modified_gmt":"2022-01-11T12:52:14","slug":"process-of-extension-of-holding-annual-general-meeting","status":"publish","type":"post","link":"https:\/\/www.legalwindow.in\/blog\/process-of-extension-of-holding-annual-general-meeting\/","title":{"rendered":"Process of Extension of holding Annual General Meeting"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-105516 size-full\" title=\"Process of Extension of holding Annual General Meeting\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Process-of-Extension-of-holding-Annual-General-Meeting-1.png\" alt=\"Process of Extension of holding Annual General Meeting\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Process-of-Extension-of-holding-Annual-General-Meeting-1.png 1200w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Process-of-Extension-of-holding-Annual-General-Meeting-1-600x315.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Process-of-Extension-of-holding-Annual-General-Meeting-1-300x158.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Process-of-Extension-of-holding-Annual-General-Meeting-1-1024x538.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Process-of-Extension-of-holding-Annual-General-Meeting-1-768x403.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Section 96 of the Companies Act, 2013 provides that each company other than a <a href=\"https:\/\/legalwindow.in\/one-person-company\/\" target=\"_blank\" rel=\"noopener\">one person company<\/a> will in every year hold an Annual General Meeting of its investors and not over 15 months will exceed between the date of one Annual General Meeting of the company and that of the next.<\/span><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><b>Table of Contents<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Provisions\"><span style=\"font-weight: 400;\">Provisions under the Companies Act pertaining to AGM\u2019s<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Reasons\"><span style=\"font-weight: 400;\">Reasons for extension of holding of AGM<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Procedure\"><span style=\"font-weight: 400;\">Procedure to file application for extension of time for holding AGM<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Compounding\"><span style=\"font-weight: 400;\">Compounding of Offence for not holding AGM<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Effects\"><span style=\"font-weight: 400;\">Effects of grant of extension of holding of AGM<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><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=\"Procedure\"><b>Procedure to file application for extension of time for holding AGM<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As provided under Section 96 of the Companies Act, 2013, each Company other than a One Person Company will in every year hold notwithstanding some other meetings, a general meeting as its Annual General Meeting. Not over 15 months will slip by between the date of one Annual General Meeting of a company and that the next.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In case of first Annual General Meeting, it shall be held within 9 months from the date of ending the first financial year of the Company. In some other cases, annual general meeting will be held within 6 months from the date of closing of the financial year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Registrar may, for any exceptional explanation, extend the time inside which any annual general meeting, other than the first annual general meeting, will be held, by a period not surpassing 3 months.<\/span><\/p>\n<h2 id=\"Reasons\"><b>Reasons for extension of holding of AGM<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Non-marking of fiscal reports because of non-accessibility of Auditors because of abdication, demise, inadequacy to sign or such other explanation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Non-availability of fiscal reports because of some other legitimate explanation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Non-marking of fiscal reports by the Managing Director because of non-accessibility of a Managing Director.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Non-availability of Director.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Abrupt passing of Directors, and because of this limit of directors goes under the minimum requirement of directors<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Such other substantial and valid reasons.<\/span><\/li>\n<\/ul>\n<h2 id=\"Procedure\"><b>Procedure to file application for extension of time for holding AGM<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chairman\/head of a company will hold a meeting of the Board of Directors for which notice should be sent no less than 7 days before the gathering.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To hold a general meeting on a set date.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pass a resolution for extension of time limit for AGM determining the reason behind the extension for holding of AGM.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To file an application to the <a href=\"https:\/\/legalwindow.in\/roc-company-anuual-filing\/\" target=\"_blank\" rel=\"noopener\">Registrar of companies<\/a> in Form No-GNL1.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In GNL-1, the reason for not holding AGM alongside essential information is to be given.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To connect the copy of Board resolution in E structure GNL-1.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Follow up with the office of Registrar of Companies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The registrar will analyze the application and may allow an expansion, whenever fulfilled.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To acquire the certificate of grant of extension in holding AGM of the company.<\/span><\/li>\n<\/ul>\n<h2 id=\"Compounding\"><b>Compounding for the offence of not holding AGM<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Compounding of offence infers an instrument wherein the defaulter company settles default by paying the money rather than a prosecution, in this way avoiding litigation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the Annual General Meeting isn&#8217;t held inside the due date as referenced without applying for extension for holding of AGM with the Registrar of Companies then the company should apply for compounding of that offence with the National Company Law Tribunal (NCLT).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Section 441 of the Companies Act, 2013 relates to the compounding of offences. The offences which are culpable with fines and punishments must be compounded either by Regional Director (RD) or by the <a href=\"https:\/\/nclt.gov.in\/\" target=\"_blank\" rel=\"noopener\">National Company Law Tribunal (NCLT)<\/a>.<\/span><\/p>\n<h2 id=\"Effects\"><b>Effects of grant of extension for holding Annual General Meeting<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When the extension is being granted, the company might start the Annual General Meeting of the Company inside the period as permitted by the Registrar of Companies. Extension maybe granted just once in a Financial Year as the Act doesn&#8217;t permit the Registrar of Companies to give further extension.<\/span><\/p>\n<p><a href=\"https:\/\/legalwindow.in\/roc-llp-annual-filing\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-105522 size-full\" title=\"ROC Annual fillings in India\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/imgpsh_fullsize_anim-26.jpg\" alt=\"ROC Annual fillings in India\" width=\"1000\" height=\"200\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/imgpsh_fullsize_anim-26.jpg 1000w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/imgpsh_fullsize_anim-26-600x120.jpg 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/imgpsh_fullsize_anim-26-300x60.jpg 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/imgpsh_fullsize_anim-26-768x154.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><\/p>\n<h2 id=\"Final\"><b>Final Words<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Annual General Meeting (AGM) is a significant administration process for the members from an organisation. It can guarantee transparency, give updates and offer individuals a chance to vote on a scope of issues. The board should utilize the AGM to speak with financial investors and support their interest. It isn&#8217;t just a meeting of directors to introduce talks to investors, yet for investors to pose inquiries and discussion.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Section 96 of the Companies Act, 2013 provides that each company other than a one person company will in every year hold an Annual General Meeting of its&hellip;<\/p>\n","protected":false},"author":5,"featured_media":105517,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-105512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Process of Extension of holding Annual General Meeting &#187; Legal Window<\/title>\n<meta name=\"description\" content=\"Guide about Process of Extension of holding Annual General Meeting. 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