Brief scenario if company doesn’t adopt its account in Board or held AGM.
(With the help of Companies Act, 2013)
1. Holding of Annual General Meeting
Under Section 96 of Companies Act, 2013–
Every company shall hold a general meeting as its annual general meeting and it shall be held within a period of nine months or 6 months as the case may be from the date of closing of the first financial year of the company.
Consequence for default of not holding AGM
Under Section 99 of Companies Act, 2013-
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.
2. Filling of Financial to ROC
U/s 137 of CA, 2013- A copy of the financial statements along with all the documents to such financial statements, duly adopted at the annual general meeting of the company, shall be filed with the Registrar within thirty days of the date of annual general meeting.
Provided that where the financial statements are not adopted at annual general meeting or adjourned annual general meeting, such unadopted financial statements along with the required shall be filed with the Registrar within thirty days of the date of annual general meeting.
Provided further that financial statements adopted in the adjourned annual general meeting shall be filed with the Registrar within thirty days of the date of such adjourned* annual general meeting.
*the meeting shall stand adjourned to the same day in the next week at the same time and place, or to such other date and such other time and place as the Board may determine
Where the annual general meeting of a company for any year has not been held, the financial statements along with the documents required to be attached under sub-section (1), duly signed along with the statement of facts and reasons for not holding the annual general meeting shall be filed with the Registrar within thirty days of the last date before which the annual general meeting
Consequence for default Non filling of Financial to ROC
The company shall be Liable to penalty of one thousand rupees for every day during which the failure continues but which shall not be more than ten lakh rupees, and
Director who is charged by the Board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the directors of the company, shall be shall be liable to a penalty of one lakh rupees and in case of continuing failure, with further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees.
It is advisable to Always to held AGM with stipulated time, to avoid delay, penalties, Compounding.
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