A Pvt LTD. Co. incorporated on 3/feb 2012. a. What is the time limit of conducting First AGM? b. Can first financial period be from 3-2-2012 to 31/3/2013?
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 31-3-2012 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
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