What are the statutory requirements of annual general meeting?

Companies Required to Hold an AGM

A company must hold its AGM within a period of six months from the end of the financial year. However, in the case of a first annual general meeting, the company can hold the AGM in less than nine months from the end of the first financial year.

Is it a legal requirement to hold an AGM?

There is now no statutory requirement for a private company to hold any general meetings, not even an Annual General Meeting. … Some companies’ articles will require them to hold an AGM and any such provision will continue to be binding on the company until the articles are amended.

What matters must be discussed at a company’s annual general meeting?

The presentation of the audited financial statements for the immediately preceding financial year; The election of directors, as required by law and the MOI; The appointment of the auditors and the audit committee; Any matters raised by shareholders, regardless of whether advance notice of the topic was given.

What is general meeting in company law?

An annual general meeting (AGM) is the yearly gathering of a company’s interested shareholders. At an annual general meeting (AGM), directors of the company present the company’s financial performance and shareholders vote on the issues at hand.

What are the legal provisions for conducting legal meeting of a company?

Statutory Provisions Of Annual General Meeting:

Section 96(1) of the Companies Act, 2013, it provides that every company with two or more persons as shareholders or members should conduct an annual general meeting every year, which is to be conducted within the elapse of fifteen months.

Are annual shareholder meetings required?

Shareholder meetings are a regulatory requirement which means most public and private companies must hold them. Notification of the meeting’s date and time is often accompanied by the meeting’s agenda.

What are the objectives of annual general meeting?

The purpose of the Annual General Meeting is to ensure full compliance with all the independent statutory requirements such as preparation and presentation of a company’s financial reports, auditor/auditors’ appointment, the election of a board of directors, and so on.

How do you conduct a general meeting?

The procedures at the AGM are basically the same as those at an ordinary committee meeting. Motions must be seconded, and a vote (generally a show of hands) taken.
…
Planning and conducting an annual general meeting
  1. Comply with government regulations. …
  2. Be transparent. …
  3. Communicate with members. …
  4. Raise awareness.

What are shareholders meeting requirements?

Scheduled meetings – Your business should hold at least one annual shareholders’ meeting. You can have more than one per year, but one per year is often the required minimum. … Usually, these include financial records, meeting minutes, corporate tax records, and other related filings.

What is the notice period for the annual general meeting of a public company?

21 days
The company must give a clear 21 days’ notice to its members for calling the AGM. The notice should mention the place, the date and day of the meeting, the hour at which the meeting is scheduled. The notice should also mention the business to be conducted at the AGM.

How often must a company hold a general meeting?

Section 336: Public companies: annual general meeting

Where section 366 required an AGM to be held each year and not more than 15 months after the previous AGM, a public company will now be required to hold an AGM within 6 months of its financial year-end.

How do you conduct annual shareholders meeting?

Steps to Hold An Annual Meeting:
  1. Schedule Meeting and Send Notice. Like all corporate meetings, the annual meeting requires notice to all shareholders (if a shareholders meeting) and notice to all directors (if a directors meeting). …
  2. Conduct the Annual Shareholder’s Meeting. …
  3. Prepare Minutes of Meeting.

What should be discussed in annual meeting?

Here are some of the most common topics to include on the agenda.
…
Annual Meeting Topics
  • Administrative Tasks. Any changes to your company’s bylaws should be presented, discussed, and voted on at the annual meeting. …
  • Board of Directors. …
  • Values and Purpose. …
  • Goals and Strategy. …
  • Sales and Results.

How much notice is required for a shareholders meeting?

Notice to Shareholders

Most states require notice of any shareholder meeting be mailed to all shareholders at least 10 days prior to the meeting. The notice should contain the date, time and location of the meeting as well as an agenda or explanation of the topics to be discussed.

What happens if a corporation does not hold an annual shareholders meeting?

If a corporation fails to hold an annual meeting, one consequence is that the shareholders may seek a court order to hold a meeting and elect directors. … Failed to observe corporate formalities such as electing directors, appointing officers, holding meetings and keeping minutes; b.

Who can chair a shareholders meeting?

Chairing general meetings

must appoint a director or shareholder to chair the meeting, and the appointment of the chairman of the meeting must be the first business of the meeting. (3) The person chairing a meeting in accordance with this article is referred to as “the chairman of the meeting”.

What is the difference between a general meeting and an annual general meeting?

The key difference is that an AGM is a scheduled meeting which must be held annually. On the other hand, an EGM is an ad-hoc meeting convened in response to an urgent matter. While the two meetings hold different purposes, the legal requirements surrounding their operation are similar in nature.

When should the Annual General Meeting be held?

As directed by the Companies Act 2013, the Annual General Meeting (AGM) for any budding new company is required to be held within 9 months from the closing of the first Financial Year in case if it is the first AGM.

What happens at an annual general meeting?

Owners at meetings receive reports on the Condominium’s business, elect directors to the Board, appoint the auditor and vote on any matters for which notice has been given to the owners and mortgage lenders. Members of the Corporation may also bring forward issues of general concern for discussion.