CHANGES RELATING TO AGM IN COMPANIES ACT 2013 There are certain clauses in AGM which have not changed like gap between 2 AGM not to exceed 15 months, etc. In this small write up, let us look at what has changed in case of provisions pertaining to AGM. Section 96 (1) - First AGM – to be held within 9 months from closing of 1st fin. year (Earlier – 18 months from incorporation) To hold AGM with Shorter notice – with consent of 95 % of members (Earlier – Consent of all members- a rare case of unanimous consent in case of shareholder meeting !) AGM cannot be held on National Holiday – Sec. 96 (2) (Earlier cannot be held on a Public holiday ). Pursuant to this, AGM can henceforth be held on a Sunday ! It may be noted that National Holidays are quite a few like Jan 26- Republic Day, Aug 15- Independence Day Oct 2- Gandhi Jeyanthi AGM to be held during business hours (Business hours is mentioned as 9 AM to 6 PM) Listed Co’s to file proceedings of AGM with Roc Rules relating to this Chapter VII is yet to come & expected shortly. For Public Limited companies, Quorum for AGM has changed, based on number of shareholders. (Section 103) When no. of members is less than 1,000 – Quorum required is – 5 When no. of members is more than 1000, but less than 5,000 – Quorum required is – 15 When no. of members is more than 5,000 – Quorum required is – 30 For Private Limited Companies, the required quorum is 2 only. (No change). More than 90 % of the unlisted Public Limited Companies will have less than 1000 shareholders. For them, there is no change in requirement relating to Quorum ; it will continue to be 5 only. It is likely that only listed Companies will have more than 1,000 shareholders and for them, the required quorum will change as mentioned above
Posted on: Mon, 16 Sep 2013 13:45:20 +0000
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