Understand the key provisions of Section 96 of the Companies Act 2013, governing Annual General Meetings (AGMs) and the essential aspects related to their conduct and compliance.
Section 96 of the Companies Act 2013 is a significant provision that governs the Annual General Meeting (AGM) of a company. The AGM holds immense importance as it serves as a mandatory gathering conducted once a year to address crucial business matters and fulfill statutory obligations. Let us delve into the key aspects outlined in Section 96:
1. Frequency of AGM: Every company is obligated to hold an AGM within six months following the conclusion of its financial year. The AGM must be convened annually to transact business as specified in the meeting notice.
2. First AGM: In the case of a newly incorporated company, the first AGM should be conducted within nine months from the closing date of its first financial year. However, if the company is registered as a One Person Company (OPC), the first AGM must be organized within six months from the end of the financial year.
3. Notice of AGM: The company must provide at least 21 days’ notice to its members, informing them about the convening of the AGM. The notice should be in writing and must clearly state the date, time, and venue of the meeting, along with the agenda of business to be conducted.
4. Business at AGM: The AGM typically encompasses the approval of the company’s financial statements, declaration of dividends, appointment or reappointment of directors, appointment or reappointment of auditors, and any other matters that necessitate the shareholders’ approval.
5. Quorum: The quorum for an AGM denotes the minimum number of members required to be physically present or represented through proxies to validate the meeting. According to the Act, the quorum for a public company should consist of either five members or 1/10th of the total number of members, whichever figure is lesser.
6. Adjournment: If a quorum is not attained within 30 minutes from the scheduled time of the AGM, the meeting may be adjourned to a later date, not exceeding 30 days. Adequate notice of the adjourned meeting must be provided to the members.
It is crucial to acknowledge that the Companies Act 2013 encompasses various other provisions pertaining to AGMs, including regulations for the passing of resolutions, voting rights, proxy representation, and the recording and circulation of meeting minutes. To gain a comprehensive understanding of the provisions and their applicability to specific situations, it is advisable to refer to the complete text of Section 96 and other relevant sections of the Companies Act 2013, or seek guidance from a legal professional.
Author Bio
