Meetings?
This query is : Resolved
29 August 2011
Hi,
AGM must call by 21 days clear notice prior to date of conducting the AGM,however company can call by shoter notice if all the members who are entitle to voting in the meeting are agrred (i.e.,100% favour).
In the above question:-1)When the approval of the share holders is taken for such shorter notice?(i.e either before AGM or in the AGM itself?)
2)If share holder dis agrees what are the relevant consequences?
AGM must call by 21 days clear notice prior to date of conducting the AGM,however company can call by shoter notice if all the members who are entitle to voting in the meeting are agrred (i.e.,100% favour).
In the above question:-1)When the approval of the share holders is taken for such shorter notice?(i.e either before AGM or in the AGM itself?)
2)If share holder dis agrees what are the relevant consequences?
29 August 2011
The answer of first answer is in your question only when meeting is to to be called on shorter notice to take important decision than approval of share holder is required.
And if shareholder disagree than AGM can be only hold after 21 day from the date of issue of first notice.
And if shareholder disagree than AGM can be only hold after 21 day from the date of issue of first notice.
30 August 2011
In the AGM the % of vote is to be decided on the basis of members present in the meeting and if 90% members agrees the resolution can be passed
30 August 2011
Hi,
AGM must call by 21 days clear notice prior to date of conducting the AGM,however company can call by shoter notice if all the members who are entitle to voting in the meeting are agrred (i.e.,100% favour).
In the above question:-1)When the approval of the share holders is taken for such shorter notice?(i.e either before AGM or in the AGM itself?)
2)If share holder dis agrees what are the relevant consequences?
AGM must call by 21 days clear notice prior to date of conducting the AGM,however company can call by shoter notice if all the members who are entitle to voting in the meeting are agrred (i.e.,100% favour).
In the above question:-1)When the approval of the share holders is taken for such shorter notice?(i.e either before AGM or in the AGM itself?)
2)If share holder dis agrees what are the relevant consequences?
03 August 2024
Under the Companies Act, 2013, the Annual General Meeting (AGM) of a company must typically be called with a clear 21 days' notice to all members, directors, and auditors. However, a company can call the AGM with shorter notice under certain conditions. Let's address your questions regarding shorter notice for AGMs:
### 1. Approval for Shorter Notice
**When to Obtain Approval:**
- **Before the AGM:**
- **Shorter Notice Requirement:** To call an AGM with shorter notice, the company must obtain the consent of all members entitled to vote at the meeting. This consent must be obtained before the meeting is convened.
- **Procedure:** You should secure written consent from all members indicating their agreement to hold the meeting with shorter notice. This consent should be documented before sending out the notice for the AGM.
### 2. Consequences of Disagreement
**If Shareholders Disagree:**
- **Inability to Hold Meeting:** If even one member entitled to vote disagrees with holding the AGM with shorter notice, the company cannot proceed with the meeting under such conditions.
- **Legal and Compliance Risks:**
- **Violation of Statutory Requirements:** Holding the AGM with less than the prescribed 21 days' notice without unanimous consent could lead to the meeting being considered invalid. This might result in non-compliance with the statutory requirements set by the Companies Act.
- **Potential Penalties:** The company could face legal consequences, including penalties or fines for not adhering to the prescribed notice period.
- **Challenges to Decisions:** Any decisions or resolutions passed at an AGM conducted with improper notice might be challenged and could be deemed invalid.
### Summary
1. **Approval for Shorter Notice:** The approval from all members entitled to vote must be obtained **before** the AGM is convened. Written consent should be secured from each member.
2. **If Shareholders Disagree:** If any shareholder disagrees with the shorter notice, the AGM cannot be conducted with that notice period. The company must adhere to the standard 21 days' notice period or risk the meeting being invalid and facing associated legal and compliance risks.
### Additional Notes
- **Documentation:** Ensure that the consent of all members is properly documented and maintained for compliance purposes.
- **Legal Advice:** For specific situations or complex scenarios, consulting with a legal advisor or company secretary is recommended to ensure full compliance with the Companies Act, 2013.
If you need further clarification or assistance, seeking advice from a company secretary or legal expert familiar with corporate law can help navigate these requirements effectively.
### 1. Approval for Shorter Notice
**When to Obtain Approval:**
- **Before the AGM:**
- **Shorter Notice Requirement:** To call an AGM with shorter notice, the company must obtain the consent of all members entitled to vote at the meeting. This consent must be obtained before the meeting is convened.
- **Procedure:** You should secure written consent from all members indicating their agreement to hold the meeting with shorter notice. This consent should be documented before sending out the notice for the AGM.
### 2. Consequences of Disagreement
**If Shareholders Disagree:**
- **Inability to Hold Meeting:** If even one member entitled to vote disagrees with holding the AGM with shorter notice, the company cannot proceed with the meeting under such conditions.
- **Legal and Compliance Risks:**
- **Violation of Statutory Requirements:** Holding the AGM with less than the prescribed 21 days' notice without unanimous consent could lead to the meeting being considered invalid. This might result in non-compliance with the statutory requirements set by the Companies Act.
- **Potential Penalties:** The company could face legal consequences, including penalties or fines for not adhering to the prescribed notice period.
- **Challenges to Decisions:** Any decisions or resolutions passed at an AGM conducted with improper notice might be challenged and could be deemed invalid.
### Summary
1. **Approval for Shorter Notice:** The approval from all members entitled to vote must be obtained **before** the AGM is convened. Written consent should be secured from each member.
2. **If Shareholders Disagree:** If any shareholder disagrees with the shorter notice, the AGM cannot be conducted with that notice period. The company must adhere to the standard 21 days' notice period or risk the meeting being invalid and facing associated legal and compliance risks.
### Additional Notes
- **Documentation:** Ensure that the consent of all members is properly documented and maintained for compliance purposes.
- **Legal Advice:** For specific situations or complex scenarios, consulting with a legal advisor or company secretary is recommended to ensure full compliance with the Companies Act, 2013.
If you need further clarification or assistance, seeking advice from a company secretary or legal expert familiar with corporate law can help navigate these requirements effectively.
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