About Annual Genral Meeting under section166

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Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2010 Can Private Company held Annual General meeting (AGM) outside India under section 166 of Companies ACT 1956

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 September 2010 NO.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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09 September 2010 Section 166(1) of the Companies Act 1956 (CA) provides: Every company shall in each year hold in addition to any other meetings a general meeting as its annual general meeting. According to section 166(2) every AGM must be held either at the registered office of the company or within the city, town or village in which the registered office is situated. An AGM cannot be held elsewhere.

Then sub-section (2) has a two exceptions stated in its two provisos. According to clause (b) of the second, a private company, which is not a subsidiary of a public company (simplicitor private company) can fix the place for all its AGMs by its articles or by a resolution passed in an AGM or by a resolution agreed to by all the members of the company, ie by unanimous consent of all its members. This resolution need not be passed at a general meeting of the company, since it is required to be "agreed to" by all the members. Such a resolution can be passed by obtaining individual consent of each member without holding a meeting.

By any of these methods a simplicitor private company can decide to hold an AGM other than the place specified in sub-section (2), namely the registered office of the company or some other place within the city, town or village in which the registered office of the company is situated. Such place can be outside the city, town or village in which the registered office of the company is situated or even any other city, town or place within India, or outside India.

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