agm
This query is : Resolved
05 September 2009
hi
what is the provision regarding the "place where agm can be held???"
what is the provision regarding the "place where agm can be held???"
05 September 2009
Hi,
Place for holding an annual general meeting
Section 166(2) of the Companies Act, provides that the annual general meeting shall be held at the registered office or at some other place within the city, town or village where the registered office of the company is situated. Due to rapid urbanisation the municipal limits of certain cities and towns tend to be extended and in that case the municipal limits, which are followed under the Companies Act and the postal limits may not coincide. The DCA have recognised this contingency and have advised vide Circular Letter No. 1/1/80-CL.V and No. 6/159/PT/64, dated 16-2-1981 that a company can hold its annual general meeting within the postal limits of the city in which the registered office is situated if it is more convenient to its shareholders.
Regards
Place for holding an annual general meeting
Section 166(2) of the Companies Act, provides that the annual general meeting shall be held at the registered office or at some other place within the city, town or village where the registered office of the company is situated. Due to rapid urbanisation the municipal limits of certain cities and towns tend to be extended and in that case the municipal limits, which are followed under the Companies Act and the postal limits may not coincide. The DCA have recognised this contingency and have advised vide Circular Letter No. 1/1/80-CL.V and No. 6/159/PT/64, dated 16-2-1981 that a company can hold its annual general meeting within the postal limits of the city in which the registered office is situated if it is more convenient to its shareholders.
Regards
05 September 2009
Some more notable things about AGM:
Annual general meeting shall be called during business hours
Sub-section (2) of section 166 provides that an annual general meeting shall be called for a time during business hours. The term "business hours" signifies the normal working hours during which the trade, industry and banks function. The provision in the section only means that the meeting shall commence during business hours. A meeting may end on the conclusion of its business irrespective of the "business hours" or adjourn at any time as may be decided by the chairman with the consent of the members.
Annual General Meeting cannot be held on a public holiday
Section 166(2) inter alia states that every annual general meeting shall be called on a day, which is not a public holiday.
It has been clarified by the Department vide Circular F. No. 8/23/(166)/69-CL-V that section 166 of the Companies Act deals with the actual period during which the annual general meeting is to be held. Sub-section (2) states that every annual general meeting shall be held on a day that is not a public holiday and this provision is mandatory. If the provision of section 166(2) are to be considered as 'merely regulatory' as suggested "shall be called" used in the section will ceased to have any meaning.
Annual general meeting shall be called during business hours
Sub-section (2) of section 166 provides that an annual general meeting shall be called for a time during business hours. The term "business hours" signifies the normal working hours during which the trade, industry and banks function. The provision in the section only means that the meeting shall commence during business hours. A meeting may end on the conclusion of its business irrespective of the "business hours" or adjourn at any time as may be decided by the chairman with the consent of the members.
Annual General Meeting cannot be held on a public holiday
Section 166(2) inter alia states that every annual general meeting shall be called on a day, which is not a public holiday.
It has been clarified by the Department vide Circular F. No. 8/23/(166)/69-CL-V that section 166 of the Companies Act deals with the actual period during which the annual general meeting is to be held. Sub-section (2) states that every annual general meeting shall be held on a day that is not a public holiday and this provision is mandatory. If the provision of section 166(2) are to be considered as 'merely regulatory' as suggested "shall be called" used in the section will ceased to have any meaning.
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05 September 2009
thanksssssssssssss
05 September 2009
nicely explained
07 September 2009
Thanks for the gesture Manish & Manmohan
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