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Failure to give agm notice

Nandan (Consultant) (25 Points)

01 December 2011

Can anyone tell me what is the panelties or consequences if in a private limited company, Board indvertently forgot to send AGM notice to one of the 4 shreholders.????

Urgent

thanks

CA vidya nagvekar

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6 Replies

Charu Srivastava (Company Secretary) (4210 Points)
Replied 01 December 2011

if default is made in holding a meeting of the company in accordance with section 166 the company, and every officer of the company who is in default, shall be punishable with fine which may extend to [fifty thousand rupees] [and in the case of a continuing default, with a further fine which may extend to [two thousand five hundred rupees] for every day after the first during which such default continues].

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Balaji (Articled assistant & CA final) (117 Points)
Replied 01 December 2011

Originally posted by : Charu Srivastava
	if default is made in holding a meeting of the company in accordance with section 166 the company, and every officer of the company who is in default, shall be punishable with fine which may extend to [fifty thousand rupees] [and in the case of a continuing default, with a further fine which may extend to [two thousand five hundred rupees] for every day after the first during which such default continues].

If company fails to Hold Annual General Meeting, then what Charu Srivastava saying is Apllicable...

But as per Sec.172 of Company Act, If company INTENTIONALLY fails to serve AGM notice to its one or more of Shareholders, then It Invalidates the Proceedings of the AGM. And If company ACCIDENTALLY fails to serve AGM notice to its one or more of Shareholders, then It doesn't Invalidates the Proceedings of the AGM...

In above case, as it is inadvertently forgotted to serve notice, it doesn't invalidate the meeting... Provided the Company Secretary or Board must acknowledge that it is unintentional...

JMD (STUDENT) (563 Points)
Replied 04 December 2011

Further, they the consent of all shareholder for the same is not required???

Balaji (Articled assistant & CA final) (117 Points)
Replied 06 December 2011

If it is Unintentional, and meeting is valid, not required any Consent... If it is Intentional, and to make its current or next meeting a valid one, consent of Shareholders are required to be Obtained for the same...