The date of approval of Financial Statements by the Board of Directors of PQR Ltd. is 17th July, 2020 and the date of notice of Annual General Meeting (AGM) is 11th August, 2020. CFO of PQR Ltd. has advised that the time

Section 101 of the Companies Act, 2013 dealing with notice of meeting, states that a general meeting of a company may be called by giving at least clear 21 days-notice. Further in case the company sends the notice by post or courier, an additional two days shall be provided for the service of notice. However, the Companies Act 2013 does not prescribe the time limit between the date of approval of financial statements by the Board of Directors of a company and the date of notice of AGM. In the given question, the Board of Directors of PQR Ltd should ensure that the gap between the Board Meeting in which the financial statements are approved and the date of the AGM, should have a minimum gap of 21 clear days-notice, unless the meeting is at a shorter notice. Hence, the advice of CFO of PQR Ltd is not tenable.