The Companies Act, 2013 read with the Companies (Management and Administration) Rules, 2014 deals with the convening of Annual General Meeting. It makes it compulsory to hold an Annual General Company to discuss the yearly results, Auditor’s appointment and others.

Important Points about AGM:

1. Every company other than a One Person Company shall hold a general meeting as its annual general meeting.
2. Meeting shall be hold each year.
3. Not more than fifteen months shall elapse between the date of one annual general meeting of a company and that of the next.
4. Notice shall specify that its an Annual General Meeting.
5.  Timeline to conduct AGM: In case of the first annual general meeting, it shall be held within a period of nine months from the date of closing of the first financial year of the company and in any other case, within a period of six months, from the date of closing of the financial year.
6. If a company holds its first annual general meeting, it shall not be necessary for the company to hold any annual general meeting in the year of its incorporation.
7. Time extended by Registrar: The Registrar may, for any special reason, extend the time within which any annual general meeting, other than the first annual general meeting, shall be held, by a period not exceeding three months.
8.  Time, Day and Place for AGM: Every annual general meeting shall be called during business hours, that is, between 9 a.m. and 6 p.m. on any day that is not a National Holiday and shall be held either at the registered office of the company or at some other place within the city, town or village in which the registered office of the company is situate.
9.  Annual general meeting of an unlisted company may be held at any place in India if consent is given in writing or by electronic mode by all the members in advance other than registered office.
10. Annual general meeting of an  Government company may be held at such other place within the city, town or village in which the registered office of the company is situate or such other place as the Central Government  may approve in this behalf other than registered office.
11. The Central Government may exempt any company from the provisions of this sub-section subject to such conditions as it may impose.
12. In case of Section 8 company the time, date and place of each annual general meeting are decided upon before-hand by the board of directors having regard to the directions, if any, given in this regard by the company in its general meeting. – Inserted by Notification dated 5th, June 2015.

Procedure to Hold an AGM

1. The company must give a clear 21 days’ notice to its members for calling the AGM.
2. The notice should mention the place, the date and day of the meeting, the hour at which the meeting is scheduled.
3. The notice should also mention the business to be conducted at the AGM. A company should send the notice of the AGM to:
   1. All members of the company including their legal representative of a deceased member and assignee of an insolvent member.
   2. The statutory auditor(s) of the company.
   3. All director(s) of the company.
4. The notice may be given in writing through speed post or registered post or via electronic mode.
5. The notice should be sent to the address of the member as per the records of the company.
6. In the case of electronic communication, the notice should be sent to the e-mail address of the member as per the records of the company. The notice can be text typed in an email or an attachment to an email.
7. The notice of the AGM should be placed on the website of the company or any other website as may be mentioned by the government.
8. An AGM can be called at a notice period shorter than 21 days if at least 95% of the members entitled to vote in the meeting agree to the shorter notice. The consent may be given in writing or through electronic mode.