Procedure to seek extension of time for holding AGM
The extension of time for the holding of AGM can be given by the Registrar of Companies. The time for holding the first Annual General Meeting can never be extended.
The Registrar shall grant an extension of time for holding the annual
general meeting of a company under the third proviso to section 96(1) only when
the application for such extension is made to him before the expiry of the the period laid down in sub-section (1) of that section. Therefore, if a company
considers that it will not be possible for a company to hold the annual general
meeting within six months from the conclusion of the financial year, after
taking the approval of the board either in Board Meeting or through Circular Resolution,
the company shall make an application in the prescribed form GNL-1 with the Registrar
before the due date for holding the said meeting. The application may be attached
by way of a letter giving full justification for seeking an extension of time
certified by the chartered accountant or company secretary or cost accountant
in practice.
The main reason for seeking an extension in time may be a delay in finalizing
the accounts due to unavoidable circumstances. In such a situation, the best
course for a company is to hold the annual general meeting by the due date and
get the approval of members for reappointment of directors in place of those
retiring by rotation and on other matters if any may be taken. As the annual
accounts are not ready, the said meeting may be adjourned to a date not
exceeding three months up to which the Registrar can grant an extension in time.
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