23 Aug 2019, 14:00 — 5 min read
Background: Annual General Meeting (AGM) of various eminent public companies like Reliance have often appeared in the news, but many people are not very familiar with the concept of AGM. An AGM is conducted to let the members know about the past performances and future strategies of the company. This article discusses what, when and how these meetings are conducted and the purpose behind holding such meetings.
An Annual General Meeting (AGM) is a meeting that must be convened mandatorily by all private and public companies (other than One Person Company) once a year.
An Annual General Meeting (AGM) is a meeting that must be convened mandatorily by all private and public companies (other than One Person Company) once a year. It must hold at the Registered Office of the Company and must be a working day.
It is only at the AGM that the shareholders and the directors of the Company get to interact with each other. Attending AGMs can help an organization grow as members can review the company’s growth rate and decide on the future scope for improvement.
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The agenda and the events transacted at the meeting has to be written and recorded in the Minutes Book for future reference.
A company, however, big or small, those that are incorporated in India have to comply with the AGM requirements every calendar year, failing which the Company and its members may have to face serious consequences.
If there is a default in holding an Annual General Meeting, then the Company and its officers shall be liable to pay a fine of up to INR 1 lakh and in case, the default continues, a fine of INR 5,000 shall be paid for each day of continuing default.
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Posted byVakilsearch Staff
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