15 January 2011
Respected Experts, If a Co. is not hold any AGM within time & also not applied to ROC for extension of time limit then what will be the impact - in this case First AGM of the co was held on 30.08.2009 & then till to day i.e. 15.01.2011 no AGM has beeb held then what will be the impact of it on the company or its Directors. Is there any penal provision for that? Thanks Debashis Mandal
15 January 2011
sec. 167(1) says that If default is made in holding an annual general meeting in accordance with section 166, the CLB may, notwithstanding anything in this Act in the articles of the company, on the application of any member of the company, call, or direct the calling of, a general meeting of the company and give such ancillary or consequential direction as the CLB thinks expedient in relation to the calling, holding and conducting of meeting.
further section 168 provides for Penalty for default in holding AGM, it says If default is made in holding a meeting of the company in accordance with section 166,
the company, and every officer of the company who is in default, shall be punishable with fine which may extend to 50000 and in the case of a continuing default, with a further fine which may extend to 2500 for every day after the first during which such default continues].
CAclubindia
