18 January 2013
sir, I have recently started a comapny in food industry. We are two partners ans shareholders of the company in 1:1 ratio. The company has been incorporated on December 12, 2012. since we do not have started our operations, we want to conduct our 1st AGM later. when we can do the same? and also guide, whether the AGM of the company can be posted and balance sheet for the same can be made from f.y. 2013-14 onwards, since we do not want to go audit this year? (reason for not going for auditing is operations of the company has not been started in the year 2012-13 f.y.)
TIME-LIMIT FOR HOLDING THE FIRST ANNUAL GENERAL MEETING
A new company which is registered under the Act, shall hold its first annual general meeting latest within a period of eighteen months from the date of its incorporation, namely, the date on which the Registrar has issued the certificate of incorporation to the company. If the first annual general meeting is so held, it is not necessary for the company to hold another annual general meeting in the year of its incorporation or in the following year. It may also be noted in this connection that the accounts placed before the first annual general meeting shall be for the period beginning from the date of incorporation and ending on a day of financial year, which will not precede the first annual general meeting by more than nine months from the close of the first financial year of the company — section 210(3).
This may be illustrated by the following example: Date of incorporation of company 23-10-2010 Date by which the first annual general meeting ought to be held 22-04-2012 The holding of the first annual general meeting shall comply with the following criteria of the Act:— (i) The gap between the last date of the accounting period and the meeting shall not exceed 9 months, and (ii) The second annual general meeting shall be held during the third year of incorporation.
Therefore, in the above example assuming that the first accounts shall be for the period from 23-10-2010 to 31-3-2011 The first AGM was to be held on or before (within a gap of nine months) 31-12-2011 The accounts for next period will end on 31-03-2012 The second AGM will be held on or before (namely the third year after incorporation) 30-09-2012
In the above example, since it was proposed to close the first accounts as on 31-03-2011, the first annual general meeting could be held before 31-12-2011 and the second annual general meeting could be held during the third year of incorporation. As explained above there is no need to hold annual general meeting in the first calendar year of its incorporation, i.e. 2010
18 January 2013
TIME-LIMIT FOR HOLDING SUBSEQUENT ANNUAL GENERAL MEETINGS
As mentioned above, every company shall hold every year an annual general meeting and ordinarily there shall not be a gap of more than fifteen months between two such meetings. Further that in terms of the provisions of section 210 an annual general meeting shall be held within a period of six months from the end of the financial year whose accounts are proposed to be considered at the said annual general meeting. Accordingly, it is the rule that a company whose financial year ends on 31st March, shall hold its annual general meeting by 30th September every year.
18 January 2013
thank you sir for your guide lines and clarity on the issue.
please tell me that, whether we have to submit the financial results (audited) to the concern authority, even though we have not started our company operation's yet.?
CAclubindia
