This document provides an in-depth description of an Annual General Meeting (AGM) under Indian law. It defines an AGM as a yearly meeting of members in an organization to vote on matters like electing directors and informing members of company activities. It outlines legal requirements like providing notice to members at least 21 days before the AGM and holding the first AGM within nine months of incorporation and subsequent AGMs within six months of the financial year end. It also details agenda items, quorum requirements, exemptions and penalties for non-compliance with AGM rules.

1. A N I N - D E P T H D R E S C R I P T I O N
O N
ANNUAL
GENERAL
MEETING
{AGM}

2. INDEX
KEY POINTS
What is AGM?
Type of Meetings in a Company
Purpose of holding AGM
Agendas covered in the AGM
Due Date of AGM
Quorum for AGM
Notice for Annual General Meeting
Legal
Requirements for Holding an AGM
First Annual General Meeting
Subsequent Annual General Meeting
Exemption of Holding AGM
Consequences of Conducting an
AGM after the Due Date
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2.
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3. 03
WHAT IS AN ANNUAL GENERAL
MEETING {AGM}?
AN ANNUAL GENERAL MEETING,
ALSO KNOWN AS AGM OR ANNUAL MEETING IS A MEETING OF THE GENERAL
MEMBERS IN AN ORGANIZATION. GENERALLY, AN ANNUAL GENERAL MEETING
INCLUDES THE MEMBERSHIP ASSOCIATIONS AND COMPANIES WITH
SHAREHOLDERS.

4. PURPOSE OF HOLDING AN ANNUAL GENERAL
MEETING
THE PRIMARY PURPOSE OF HOLDING AN ANNUAL GENERAL MEETING IS
TO ALLOW THE SHAREHOLDERS TO VOTE ON
MATTERS LIKE THE COMPANY ISSUES, SELECTION OF BOARD
DIRECTORS OF THE COMPANY
AND INFORMING THE MEMBERS ABOUT THE PREVIOUS OR FUTURE
ACTIVITIES OF THE
COMPANY. ADDITIONALLY, IN BIG COMPANIES IT IS THE ONLY TIME OF
THE YEAR WHERE
ALL THE SHAREHOLDERS OF THE COMPANY SIT AND INTERACT ON
VARIOUS ISSUES.
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5. Issues Covered in
the AGM.
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The major agendas covered in the Annual General Meeting are as follows;
• Annual accounts
• Dividend among shareholders
• Director’s report/ auditor’s report
• Appointment/ remuneration of statutory auditors
• Appointment/ replacement of directors

6. DUE DATE OF AGM
AS PER THE PROVISIONS OF THE
COMPANIES ACT THERE ARE THREE
CONDITIONS FOR CONDUCTING
THE AGM. THESE CONDITIONS ARE
AS FOLLOWS;
· THE TIME PERIOD BETWEEN TWO
CONSECUTIVE AGMS SHOULD NOT
BE MORE THAN 15 MONTHS
· IT SHOULD BE CONDUCTED
EVERY YEAR
· 6 MONTHS FROM THE DATE OF
CLOSING OF THE FINANCIAL YEAR 06

7. QUORUM FOR
AGM
The quorum or number of members for an Annual
General Meeting is as follows;
· Private Companies: Minimum two members within half
an hour of the
commencement of the annual meeting.
· Public Companies: At least five members should be
present.

8. NOTICE FOR ANNUAL GENERAL
MEETING
The notice
for the commencement of the AGM should be sent to all the members
at least 21 days before the meeting along with the annual report of the
company. However, a shorter notice can be provided after taking
consent from all the members who are entitled to vote at the meeting.
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9. LEGAL REQUIREMENTS FOR HOLDING
AN AGM
LEGALLY, A
NOTICE IS SENT TO ALL THE MEMBERS OF THE ANNUAL MEETING, 20
DAYS PRIOR TO THE MEETING. HOWEVER, THERE IS AN EXCEPTION TO
THIS RULE AND A SPECIAL NOTICE IS ISSUED FOR SHORTER NOTICE
PERIOD, UNDER SPECIFIC CONDITIONS. FURTHERMORE, THE
FOLLOWING DOCUMENTS NEED TO BE SENT ALONG WITH THE NOTICE;
· A COPY OF ANNUAL ACCOUNTS OF THE COMPANY
· REPORT ON THE COMPANY’S POSITION IN THE PROVIDED YEAR,
PREPARED BY THE DIRECTOR
· AUDITOR’S REPORT OF THE ANNUAL ACCOUNTS

10. FIRST ANNUAL GENERAL MEETING
THE FIRST
ANNUAL GENERAL MEETING, AS THE NAME SUGGESTS IS
HELD IN THE FIRST YEAR OF THE INCORPORATION OF A
COMPANY. AS PER THE PROVISIONS OF THE COMPANIES
ACT, 2013, IT SHOULD BE COMMENCED WITHIN NINE
MONTHS FROM THE DATE OF THE CLOSURE OF THE
FIRST FINANCIAL YEAR OF THE COMPANY.

11. SUBSEQUENT
ANNUAL GENERAL
MEETING
SUBSEQUENT AGMS
ARE CONDUCTED WITHIN SIX MONTHS FROM THE DATE OF
THE END OF THE GIVEN FINANCIAL YEAR.

12. EXEMPTION OF HOLDING AGM
PROVIDED
UNDER THE SECTION 96, SUB-SECTION 1 OF THE
COMPANIES ACT, 2013 ONE PERSON
COMPANIES IS EXEMPTED TO HOLD AN ANNUAL
GENERAL MEETING. HOWEVER, THE MANNER IN
WHICH A RESOLUTION IS PASSED IN AN OPC IS
CONTAINED IN THE SECTION 122 OF THE
COMPANIES ACT.

13. PENALTY FOR NOT HOLDING
AGM
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THE FINE OF RS. 50, 000 IS IMPOSED ON COMPANIES IN CASE OF
DEFAULT RELATED TO THE AGM. MOREOVER, A FINE OF RS. 2500
IS LEVIED PER DAY FOR CONTINUING THE DEFAULT.
IN CASE IF THE COMPANY IS ORDERED TO HOLD THE AGM
THROUGH A TRIBUNAL UNDER SECTION 97, SUCH COMPANY IS
LIABLE FOR PENALTY. IN SUCH CASE, THE COMPANY AND EVERY
OFFICER OF SUCH COMPANY IS PUNISHABLE FOR A FINE WHICH
MAY EXTEND TO RS. 1 LAKH. FURTHERMORE, IN CASE OF THE
CONTINUANCE OF SUCH DEFAULT, A FINE OF RS. 5000 IS LEVIED
PER DAY ON THE COMPANY.

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