Extension of Annual General Meeting (AGM)- Companies Act 2013

Ministry of Company Affairs (MCA) vide General Circular no. 28/2020, dated 17th August 2020 has issued a clarification on an extension of the Annual General Meeting (AGM) for the financial year ends on 31.03.2020. In this article, we will discuss the procedure for extension of AGM.

Due date of Annual General Meeting (AGM)

Every company other than one person company shall hold a general meeting as its Annual General Meeting. The time period for the holding of AGM is given under section 96 of the companies Act, 2013, the same is given as under-

In case of First AGM of the company

First AGM of the Company shall be held within a period of 9 months from the date of the closing of the first financial year of the company.

In case of subsequent AGM of the company

The company shall hold its AGM within a period of 6 months from the date of the closing of the financial year of the company.

Must-Know- Section 153 of Companies Act 2013- How to surrender DIN

Penalty on failing to hold AGM

If a company fails to hold the AGM within the due date then such company is liable for penalties u/s 99 of companies act 2013.

The company and every officer of the company, who is in default shall be punishable with a fine which may extend to Rs. one lakh and in case of continuing default with a further fine which may extend to Rs. five thousand per day during which such default continues.

Procedure for extension of AGM

If any company wants to extend the due date of AGM then such company have to follow the below mention procedure:

Calling of Board Meeting– The company shall call a board meeting for this purpose.

Board Resolution- Board of director shall pass a board resolution for filing of an application with ROC for the extension of AGM.

Filing of form GNL 1- The company shall file an application for extension of AGM in e-form GNL 1, with concerned ROC.

Content of the application in form GNL-1

  • A true copy of board resolution.
  • Reason for extension of AGM.

Due date of GNL 1- This form shall be filed on or before 29 September 2020.

After receiving the application, ROC will check the fact of the application and shall give the extension letter for any period maximum for 3 months.

Format of Board Resolution and letter for extension of AGM

Download here-

Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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