Answer» - Every company other than one person company must hold an Annual General Meeting once a year.
- Annual General Meeting is held to review the working of the company during the previous financial year and take an effective decision for the next year.
- It is mainly called to approve Annual Report, Auditor Report, Annual Accounts, to declare a dividend, to elect Directors, Auditors and to transact special business, if any.
- First AGM shall be held within 9 months of the closing of the first financial year of the company.
- The time interval between two Annual General Meetings should not be more than 15 months.
- If the default is made in holding AGM then the company and every officer of the company in default are punishable with a fine which may extend up to ₹ 1,00,000 and up to ₹ 5,000 per day till default continues.
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