Who can call for EGM?

Calling an EGM as requested by shareholders owning at least 10 percent of the Company’s voting shares shall be carried out by the Company’s Board of Directors. The Board of Directors shall either call or refuse to call the EGM within 5 days from the date that the corresponding request was lodged.

How many EGM can be held in a year?

There is a gap of around a year or 18 months between two annual general meetings. Therefore, if an important business arises in between two annual general meetings that require shareholders approval, then an extraordinary general meeting can be called.

What does 21 clear days notice mean?

All notice periods for shareholders’ meetings must be notice periods of ‘clear’ days. This means therefore that 21 clear days’ notice of a general meeting will not always be the same period of notice in actual number of days and it is important to get the calculation right.

How do you pass a special resolution?

A resolution of members (or a class of members) of a company passed by: On a show of hands at a general meeting, a majority of not less than 75% if it is passed by not less than 75% of the votes cast by those entitled to vote (section 283(4), Companies Act 2006).

Can AGM called shorter notice?

Yes, AGM under the Companies Act, 2013 can be called at shorter notice provided that; The consent in writing or electronic mode is received from not less than ninety-five per cent of the members entitled to vote at the meeting.

What happens if AGM is not held?

This power cannot be exercised in case of the first annual general meeting. Companies which are not holding their annual general meeting with in stipulated period as laid done in the act are contravening the requirements of section 96 of the Act and liable to pay fine under section 99 of the Companies Act, 2013.

Can AGM be held without accounts?

You could hold the annual general meeting without laying the accounts, then lay the accounts later at a general meeting. Accounts are normally laid at an AGM (if they are laid), but subject to anything to the contrary in the articles it is permitted to lay them at a general meeting.

Is AGM compulsory for private company?

Every Company whether, public or private, limited by shares or guarantee, with or without share capital or unlimited company is required to hold an AGM every year. In the Annual General Meeting, the audited accounts of the Company are approved, appointment of auditors and Directors are finalized.

Which company is not required to hold AGM?

All companies except one person company (OPC) should hold an AGM after the end of each financial year. A company must hold its AGM within a period of six months from the end of the financial year.