Section 96 of the Companies Act, 2013
Section 96 of the Companies Act, 2013 deals with the Annual General Meeting (AGM) of a company. Here's a simplified explanation:
Section 96 – Annual General Meeting (AGM)
1. Applicability
Applies to every company other than a One Person Company (OPC).
2. First AGM
A company must hold its first AGM within 9 months from the end of its first financial year.
If the first AGM is held within this time, no need to hold another AGM in the same year.
3. Subsequent AGMs
Every company must hold an AGM:
Once in each year, and
Within 6 months from the end of its financial year,
With a maximum gap of 15 months between two AGMs.
4. Extension
The Registrar may extend the time for holding an AGM (except the first AGM) by a period not exceeding 3 months.
5. Time and Place of Meeting
AGM must be held:
During business hours (i.e., between 9 a.m. and 6 p.m.),
On any day that is not a public holiday,
At the registered office of the company or some other place within the city, town, or village where the registered office is located (for unlisted companies, it can be anywhere if agreed by all members).
6. Penalty for Non-Compliance
If a company fails to hold the AGM:
The company and every officer in default shall be punishable with a fine up to ₹1,00,000, and
A further fine of ₹5,000 for each day of continuing default.
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