FGH Ltd. incorporated in 2015 and its financial year is ending 31st March. The company had held its annual general meeting on 10th July, 2018. Thereafter the company has not held its annual general meeting till end of No

CS Professional · Advanced Company Law and Practice · PYQS · December 2019
FGH Ltd. incorporated in 2015 and its financial year is ending 31st March. The company had held its annual general meeting on 10th July, 2018. Thereafter the company has not held its annual general meeting till end of November, 2019. Manoj, a shareholder approaches you for guidance. Briefly discuss the provisions of the Companies Act, 2013 and the rules made thereunder and advise Manoj about his rights in these circumstances.

Answer & Explanation:

The provisions of Section 96 and Section 97 the Companies Act, 2013 and Rule 74 of the National Company Law Tribunal Rules, 2016 providing for holding of the annual general meeting and application to the National Company Law Tribunal (the Tribunal) are discussed as under: (1) As per Section 96 (1) of the Companies Act, 2013, every company other than a one person company shall in each year hold in addition to any other meetings, a general meeting as its annual general meeting and shall specify the meeting as such in the notice calling it and not more than fifteen months shall elapse between the date of one annual general meeting of the company and that of the next. (2) It is provided in Section 96 (1) of the Companies Act, 2013 that 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. (3) It is also provided in Third Proviso to Section 96(1) of the Companies Act, 2013 that the Registrar of Companies may, for any special reason, extend the time within which the annual general meeting, other than the first annual general meeting, by a period not exceeding three months. (4) As provided in Section 97 of the Companies Act, 2013, if any default is made in holding an annual general meeting of a company under Section 96 of the Companies Act, 2013, the National Company Law Tribunal (the Tribunal) may, notwithstanding anything contained in the Act or the articles of association of the company, on the application of any member of the company, call or direct the calling of an annual general meeting of the company and give such ancillary or consequential directions as the Tribunal think expedient the direction may include a direction that one member of the company present in person or by proxy shall be deemed to constitute a meeting. a general meeting held in pursuance of the directions of the Tribunal as aforesaid, shall, subject to any directions of the Tribunal, be deemed to be an annual general meeting of the company under the Act. (3) As provided in Rule 74 of the National Company Law Tribunal Rules, 2016 an application under Section 97 Companies Act, 2013 for calling or obtaining a direction to call the annual general meeting of the company shall be made by any member of the company in Form No. NCLT 1 and shall be accompanied by the documents specified in Annexure-B i.e. affidavit verifying the petition bank draft evidencing payment of application fees and any other relevant documents a copy of the application shall be served on the Registrar of Companies on or before the date of hearing. It is not stated in the question and therefore it is presumed that FGH Ltd. has not obtained any extension of time from Registrar of Companies for holding the annual general meeting under 3rd proviso to Section 96(1) of Companies Act, 2013. As the company has not convened annual general meeting in 2019 within six months of the close of the financial year i.e. by 30th September, 2019 and more than fifteen months' time has elapsed from the date of the last annual general meeting convened on 10th July, 2018. Mr. Manoj may choose to file application before the Bench of Tribunal as above in Form No. NCLT-1 for seeking directions for calling the annual general meeting and other appropriate directions under section 97.

Topics: General Meetings

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