Company Fail to held Annual General Meeting.
According to Companies Act 2013 every company need to held an annual general meeting. Under section 96 of companies Act makes it compulsory to held annual general and in this meeting company discuss the yearly results, company progress, company future plan and auditor appointment. A company can held annual general meeting after end of financial year except one person company ( OPC). If company unable to held annual general meeting within the prescribed time under companies act it can apply for extension period three months .
Procedure to held an AGM
Every company need to give notice to every member before 21days of Annual General Meeting. The notice should give detail about the meeting agenda, date, place of the meeting. Company should send the notice of following persons
– All Directors of the company
-All company members.
– Company Auditor.
Agenda for discuss in AGM
1. Consideration of the auditor’s report
2. Consideration of the board report.
3 Consideration and adoption of the audited financial statement
4. Appointment of directors to replace the retiring directors.
5. Declaration of dividend.
6.Appointment of auditors and deciding the auditor’s remuneration.
Penalty for default in holding an AGM
If company fail to hold an annual general meeting within prescribed time including extension if any shall be liable for penalty. According to companies act the company and every officer of the company who commit such default shall be liable to punishment with a fine of Rs, 1,00,000 and every officer will also liable if the default is continuing a fine of Rs 5000 per day.