Annual General Meeting (AGM) [Section 96]
An Annual General Meeting (AGM) is an important meeting for safeguarding the shareholders of a company. AGM affords an opportunity to the shareholders to meet atleast once every year to review the working of the company. It gives them the opportunity to know the condition of the company and also make suggestion for its improvement and progress.
Every AGM shall be called during business hours on any day not a national holiday declared by the Central Government, and held at the registered office or in any place within the city, village, or town in which the registered office of the company is situated.
Both Ordinary and Special Business can be transacted at an AGM.
A Company is required to hold an AGM in every calendar year. First AGM is to be held within the period of 9 months from closing of its first financial year otherwise in other cases within the period of 6 months. The time lag between two successive AGM shall not exceeds 15 months. If a company holds its first AGM as aforesaid, it shall not be necessary for the company to hold any AGM in the year of its incorporation.