Companies Bill 2013 | First Annual General Meeting | AGM | Notice for AGM | Consent for AGM | Quorum

Major Changes

● Maximum time for holding first AGM

● Time and Day

● Length and Mode of Notice

● Consent for Shorter Notice

● Quorum

● Penalty 

Maximum Time For Holding First AGM

The Companies Act, 1956

The Act specifies the maximum time for holding Annual General Meeting as “18 months from incorporation or 9 months from closure of accounts whichever is earlier”

 The Companies Bill, 2013

The Act specifies the maximum time for holding Annual General Meeting as “9 Months from closure of accounts”

Time and Day

The Companies Act, 1956

The Act specifies that every annual general meeting (AGM) shall be called for a time during Business Hours, on a day that is not a Public Holiday.

The Companies Bill, 2013

The Act specifies that 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.

Length and Mode of Notice

The Companies Act, 1956

The Annual General Meeting shall be called for a time during Business Hours, on a day that is not a Public Holiday.

The Companies Bill, 2013

• 21 days clear notice to be given by all companies.
• Notice may be given in writing or in Electronic Form in the manner prescribed.

Quorum

The Companies Act, 1956 Private Companies – 2 Members Public Companies – 5 Members The Companies Bill, 2013 Private Companies – 2 Members Public Companies –

• 5 members where total number of members do not exceed 1000.
• 15 Members where Total Number of Members Exceed 1000 but do not Exceed 5000.
• 30 Members where Total Number of Members Exceed 5000 

Penalty 

The Companies Act, 1956

Company, and every officer of the company who is in default, shall be punishable with fine which may extend to Fifty Thousand Rupees. In the case of a continuing default, with a further fine which may extend to two thousand five hundred rupees for every day after the first during which such default continues.

The Companies Bill, 2013

Company, and every officer of the company who is in default, shall be punishable with fine which may extend to One Lac. In the case of a continuing default, with a further fine which may extend to five thousand rupees for every day after the first during which such default continues.