Agm held on public holiday of a listed company

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Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2013 If a listed company has called and conducted its agm on a public holiday, what are its consequences and what remedial actions can the company take to rectify the same.

Also ensure if the business transacted will be considered as null and void or valid?

Rajat Poddar

Rajat Poddar (Expert)
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10 August 2013 https://www.caclubindia.com/experts/holding-of-agm-on-a-public-holiday-829550.asp

refer following link...

Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2013 But in my case, AGM has already been held, so I cant call BM to shift the date of AGM

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Ajay Mishra

Ajay Mishra (Expert)
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11 August 2013 No, you can not call BM for the same, because AGM is hold one time in a year. You will face procecution under the Companies Act, 1956 and under SEBI Laws.

Ajay Mishra

Ajay Mishra (Expert)
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11 August 2013
Prosecution and penalty for non-compliance
Where the company has defaulted under section 156 and/or 210 of the Companies Act, 1956, that is, where they have not held the annual general meeting and/or have not placed the balance sheet and the profit and loss account before the annual general meeting, prosecutions are rarely launched. The fact that the complaint has to be filed in the court of first class Magistrate having territorial jurisdiction over the place at which the Registered office of the company is situated, which is at the place other than the Head Quarter of the Registrar need not prevent the Registrar from enforcing the penal provision in this regard.
Section 168 contains penal provision for not complying with the provisions of section 166 or 167. It provides that if default is committed in holding the annual general meeting of the company, the company and every officer of the company who is in default shall be punishable with fine which may extend to Rs. 50,000 and if the default is continuing one then with further fine extending upto Rs. 2,500 for every day after the first day during which the default continues.
However, if the books of accounts have been ceased by the police and produced in criminal court, the default is beyond the control of the company and should not be punished.
Failure to hold the meeting in each calendar years is a separate offence different from failure to had it within 15 months of the earlier meeting.
In State of Kerela v West Coast Planters Agencies (P) Ltd. (1958) 28 Comp Cas. 13 (Ker) (DB) it was held that where there was only a single member in a company then not holding the AGM would not amount to a default.
In ROC v Krishna Nambiar (1958) Comp Cas 225, it was held that if there was any default in holding AGM the company immediately becomes punishable but for an officer of the company to be punished it is necessary to prove that he was knowingly responsible for the default.

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2013 What can I do to correct this non compliance? Suggest me the further course of action for the same