Annual general meeting

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MUKESH JOSHI (Querist)
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04 June 2012 WHAT ARE THE REMEDIES DOES THE COMPANY HAS IF HE CAN'T HELD ITS FIRST AGM (ANNUAL GENERAL MEETING) WITHIN 18 MONTHS OF ITS INCORPORATION & SECONDLY IS THERE ANY WAY OUT SO CAN WE DOESN'T REQUIRED TO PAY THE PENALTY?

miss tanveer ahuja

miss tanveer ahuja (Expert)
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05 June 2012
sec 166(1) provides that the registrar may, for any special reason, extend the time within which any AGM (not being the 1st AGM) shall be held, by a period not exceeding three months.

sec 167: If default is made in holding an AGM in accordance with section 166, the Central Government may, notwithstanding anything contained in this act or 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 directions as the central government thinks expedient in relation to the calling, holding and conducting of the meeting.

explanation: 1) The directions that may be given under this sub section may include a direction that one member of the company present in person or by proxy shall be deemed to constitute a meeting.
2) A GM held in pursuance of sub section(1) shall subject to any directions of the central government, be deemed to be the AGM of the company.

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CS SIDDHARTHA BANIK

CS SIDDHARTHA BANIK (Expert)
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05 June 2012 Option available is as under:

1. Convene the AGM immediately and then file all the required returns/Forms with MCA.

2. Then apply for compounding of offence. Alternatively, wait till you receive and notice from ROC.

You have to pay the penalty as you have contravened the law.

Thanks,

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Mukta Suyal

Mukta Suyal (Expert)
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05 June 2012 you can take extension to conduct your AGM but it should be done before the due date of the AGM.

But if the last date of the AGM is expired then you need to file the application for condonation of delay before the Company Law Board.
Kindly, correct me if I am wrong.

ARUN KUMAR MAITRA

ARUN KUMAR MAITRA (Expert)
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26 June 2012 No time extension is allowed for holding the 1st AGM.In case ,the AGM is held beyond the statutory time - limit, the proceedings will remain valid but the company and its officials in default will be punishable with fine for delay in holding the same.