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Annual general meeting

p.laxmidhar prusty (trainee) (38 Points)

12 September 2014

Dear Friends,

I have a doubt please help me to solve this query

My Company is public company having paid up capital more than Rs. 10.00 Crore, going to hold AGM in 25-09-2014 for the financial year ended 31-03-2014. But still Audit of the accounts is not completed. The auditor told he will sign the balance sheet on dated 10-10-2014.

My question is

1. can the company hold AGM on dated 25-09-2014 without adoption of the account, because it is not prepared ?

2. can company conduct Adjourned Annual General meeting after 10-10-2014 (after signing the balance sheet) for getting approval from the shareholder?

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4 Replies

prakash (Company Secretary) (1352 Points)
Replied 12 September 2014

Dear Laxmidhar,

The company can hold it annual general meeting on 25.9.2014 though accounts are not ready for adoption by shareholders.

The Adjourned AGM should be held within time frame provided under the provision of the companies, as per section 210, AGM shall be held within 6 month from the completion of financial year. so your adjourned AGM must be before 30.09.2014.

Your company could have applied for extension of time for holding AGM in form GNL 1, but delay in auditing the accounts is not valid ground to be considered by ROC.

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p.laxmidhar prusty (trainee) (38 Points)
Replied 15 September 2014

But i know Government Companies are conducting AGM, on dated 25th septemeber, 2014 with out adoption of the accounts and the company adjourned the meeting and conducting the AGM after audit, the date of Adjourned AGM is 25th october 2014 for approving the Accounts.

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 15 September 2014

No, that is not permissible. DCA has clarified long back that even adjourned meeting must be held within the due date of AGM as per the Act failing which it will amount to contravention of the provisions of the Act.