Table of Contents
Table of Contents
When Should A Company Conduct Its Annual General Meeting (agm)
The AGM Compliance Requirements are a core part of corporate rules. It helps in deciding when a company should hold its Annual General Meeting (AGM).
Pankaj Verma
When Should a Company Conduct Its Annual General Meeting (AGM)
The AGM Compliance Requirements are a core part of corporate rules. It helps in deciding when a company should hold its Annual General Meeting (AGM). The AGM is not only a legal formality but also an important chance for open talk with shareholders & better control. The Annual General Meeting (AGM) under company law helps in ensuring order, trust & fairness.
Today, In this article we will look at the AGM Compliance Requirements define the right time to hold meetings & the process that keeps a company in line with rules on Filesure.
Understanding the Core of AGM Compliance Requirements
The Annual General Meeting (AGM) is guided by legal rules that make sure every company stays honest & open. The AGM Compliance Requirements start with knowing when the meeting should be held, how it must be called & what happens if dates are missed.
AGM under Companies Act 2013
The Companies Act 2013 explains that all companies except one person companies must hold an AGM every year. The first AGM for a new company must be held within nine months from the end of its first financial year. The next AGMs must be held within six months of the end of every financial year. The time gap between two AGMs must not be more than 15 months. The meeting must take place during working hours between 9 a.m. to 6 p.m. on a day that is not a public holiday & at a proper place.
The AGM due date must be fixed by counting the six month or nine month time after the financial year ends. It helps the company stay on time with law.
Why Timing Matters for AGM Compliance Requirements?
The right timing of AGM builds trust & keeps a company safe from legal issues. The late meeting or wrong notice may lead to fines & loss of reputation. The failure to hold AGM on time can bring action & penalties under Section 99 of the Act.
The proper time also gives shareholders enough chance to read the annual report, the director report, the auditor report & ask questions. It makes them feel respected & part of the company.
How to Schedule Your AGM?
These steps help you plan your AGM smoothly in line with AGM Compliance Requirements.
Determining the Right Date:
The company must know the financial year end which is usually March 31 in India. The next step is to plan AGM within six months from that date. It means if the year ends on March 31, then the last date allowed is September 30. The new company gets up to nine months after its first financial year. The total gap between two AGMs must not be more than 15 months.
Giving Notice:
The company must send notice to all members, directors & auditors at least 21 clear days before the meeting. The notice must have date, time, place or online link, meeting agenda & other points. The wrong or late notice may make the meeting invalid.
Venue & Mode of Meeting:
The meeting must happen at the company office or in the same city or town. The use of video calls or online tools is allowed in special cases. The online AGM or hybrid AGM must follow the same rules as physical meetings.
AGM Extension Rules:
The company can ask the Registrar of Companies for more time of up to three months if the AGM cannot be held on time. The first AGM cannot get any extra time. The company must explain the delay like pending audits or unfinished reports. The late AGM without approval breaks the AGM Compliance Requirements & brings fines.
Step | Action | Timeline |
Identify FY end & compute AGM due date | The date should be within six months or nine months for first AGM | Right after FY ends |
Board meeting to fix AGM date & agenda | The board must pass resolution for date, place or mode & agenda | 45-60 days before AGM |
Draft & send notice | The notice should reach everyone 21 days before meeting | Minimum 21 days before AGM |
Arrange venue or online setup | The company must confirm meeting place or online platform | 7-14 days before meeting |
File for extension if needed | The company must send Form GNL-1 with valid reason | Before time limit ends |
Conduct AGM | The company must present reports, approve results & appoint auditors | On planned date |
Post AGM work | The company must file MGT-15 & other forms | Within 30-60 days |
Key Compliance Areas During & After the Meeting
The AGM Compliance Requirements continue during & after the meeting.
During the Meeting:
The company must show audited financials, board report & auditor report for approval.
The company must declare dividends if planned & take shareholder approval.
The company must appoint or reappoint directors & auditors & fix their pay.
The company must allow shareholders to vote or join through proxy or e-voting.
The company must record meeting minutes & sign them within 30 days.
Post AGM Compliances:
The company must file several forms & keep records.
The company must file Form MGT-15 within 30 days.
The company must file Form MGT-14 when special business is done.
The company must file annual return in Form MGT-7 within 60 days of AGM.
The listed companies must file meeting details with the stock exchange within 48 hours.
The company must pay declared dividend within 30 days.
The failure to complete these filings breaks the AGM Compliance Requirements.
First AGM Timeline for New Companies & Virtual AGM Guidelines
First AGM for New Companies:
The first AGM for new companies must be within nine months from the end of the first financial year. The company need not hold another AGM in the year of registration. The rule gives time to new companies to start their work smoothly.
Virtual AGM Guidelines:
The use of technology allows companies to hold meetings through video calls. The rules now permit virtual AGM using safe audio visual tools. These guidelines cover e-voting, remote attendance, clear communication & early notice. It ensures online AGMs also meet AGM Compliance Requirements. The same notice & timing rules apply to virtual AGMs too.
Why Missing the Deadline Matters in AGM?
The late AGM or missed deadline brings legal issues. The law under Section 99 says the company & its officers can get a fine up to ₹1 lakh. The daily fine can be ₹5,000 until the default is fixed. The tribunal may also order the company to hold the AGM. The AGM Compliance Requirements help companies avoid these penalties & keep good standing.
Conclusion
At Last, We Can conclude that the AGM Compliance Requirements make sure every company holds its Annual General Meeting (AGM) on time & follows all steps correctly. The right AGM due date, proper planning & clear record filing keep the company safe & respected. The clear knowledge of AGM extension rules helps companies stay ready for delays. The good follow-through during & after the AGM builds trust & shows strong governance. The company that respects its AGM Compliance Requirements wins trust of investors & keeps steady growth.
Also Read: Why Every Director In India Must Complete Director Kyc On Time