Time Limit for holding Annual General Meeting (AGM)

All the Companies registered under the Companies Act, 2013 or any other previous Indian Laws, be it Public or Private or Producer Company whether Listed or Unlisted in any Stock Exchanges, are required to hold an Annual General Meeting on a yearly basis. 

All companies are mandatorily required to hold an agm annual general meeting in every calendar year.


Exception: A One Person Company (OPC) is not required to hold Annual General Meetings.



(1) TIME LIMIT FOR HOLDING FIRST ANNUAL GENERAL MEETING (AGM)


Provisions under Section 96 of the Companies Act, 2013


A company, which is newly incorporated/registered, is required to hold its first Annual General Meeting within 9 months from the date of closing of the 1st financial year of the company. 


And, in case the 1st AGM is held within the time limit mentioned above, the company is not required to hold any AGM in the 
year of its incorporation.


(2) TIME LIMIT FOR HOLDING 2ND AND SUBSEQUENT ANNUAL GENERAL MEETINGS (AGMs)


Provisions under Section 96 of the Companies Act, 2013


Companies are required to hold their 2nd and subsequent Annual General Meetings within a period of six months, from the date of closing of the financial year.


(3) MAXIMUM INTERVAL BETWEEN TWO AGMs


The provisions of sub-Section (1) of Section 96 of the Companies Act, 2013 clearly states that the period between two Annual General Meetings shall not be more than (15) fifteen months.




(4) EXTENSION OF TIME LIMIT FOR HOLDING OF AGM


The Registrar of Companies may, on an application made to it by way of filing of Form GNL-1 along with certified true copy of the Board Resolution, extend the period for holding the Annual General meeting for a period not exceeding 3(three) months.

The companies are not allowed to make an application for extension of time for the first Annual General Meeting. Therefore, the non-holding of 1st AGM will be a non-compliance of the Section 96 of the Companies Act, 2013 and the company will be liable for penal provisions.


(5) TIMING OF HOLDING AGMs

The company, while deciding the date and time of the AGM, should keep in mind two important aspects:

i) AGM date shall not be a National Holiday as declared by Central Govt; and
ii) AGM time shall be during business hours i.e. between 9am and 6pm.


(6) VENUE OF THE AGM

AGM of a company shall be held -
i) either at its registered office;
ii) or some other place within the city, town or village in which its registered office is situated.

In exceptional cases, AGM of an unlisted company may be held at any place in India.
This is subject to the condition that the company obtains consent in writing or by electronic mode from the shareholders in advance.



(7)  EXAMPLE

Illustration #1

(First and Second AGMs)


Particulars

Date

Date of Incorporation

15.04.2017

Date of closing of the first financial year

31.03.2018

Due Date of 1st AGM (within 9 months from date of closing of the first financial year)

31.12.2018

Date of closing of the second financial year

31.03.2019

Due date of 2nd AGM (within 6 months from date of closing of the second financial year)

30.09.2019



Illustration #2

(Time gap between 2 AGMs not to exceed 15 months)


Particulars

Date

Actual date of previous AGM

20.06.2018

Date of closing of current financial year

31.03.2019

Due date of next AGM (if calculated within 6 months from date of closing of financial year i.e. 6 months from 31.03.2019)

30.09.2019

Due date of next AGM (if calculated not more than 15 months shall elapse between 2 AGMs i.e. 15 months from 20.06.2018)

19.09.2019



Next AGM should be held on or before earlier of the above two due dates i.e. 19.09.2019 and 30.09.2019

19.09.2019