Wednesday 18 August 2021

What are the analysis of data in collection of notice and agenda of AGM?

Calling and holding of AGM in an unlisted company in India is step by step process and it has to be followed keeping in mind the data and deep analysis keeping in mind the items for approval by the members of the company.

Due date of AGM should be kept in mind. Like, first AGM should be conducted within a period of 9 months from the date of closing of the first financial year e.g. by 31st December. 

In cases where it is other than first AGM, AGM should be held within a period of 6 months from the date of closing of the financial year i.e. 30th September. Interesting thing to note that as per Sebi LODR regulations, top 100 listed entities must hold their AGM within a period of 5 months from the date of closing of financial year. 

Gap between two successive AGMs should be not more than 15 months.

Extension of AGM is possible with prior approval of ROC.

Notice of AGM along with annexures should be sent to the members of the company atleast 21 clear days in advance of meeting. Make sure while calculating the 21 clear days do not include day of sending the notice and day of meeting. 

In case the company wants to hold AGM at shorter notice, then, that is also possible if consent in writing is given by not less than 95% of the members entitled to vote at such meeting.

In short, the process of convening AGM is as below;

1) Appointment of Scrutinizer if required

2) Holding of Board meeting

3) Notice of the AGM

4) Website disclosure

5) Advertisement in newspaper, applicable only in case where resolutions to be passed through e-voting is to be done

6) Remote e-voting

7) Register of Proxy

8) Documents available at the venue

9) Make sure registers of inspection are there at venue

10) Holding of AGM

11) Make sure to read observations in Auditor's report

12) Voting at AGM

13) Announcement of result

14) Minutes of AGM. This to be circulated within 30 days from the date of conclusion of AGM along with the date of entry.

15) Maintenance of Scrutinizer register

16) Forms and documents filing at ROC


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