Key Provisions Relating to Adjournment of General Meeting Under Companies Act 2013

     

Key Provisions Relating to Adjournment of General Meeting Under Companies Act 2013

    1.  Section 103(2) of the Act, provides that if within half an hour from the time appointed for holding a meeting, the quorum is not present, the meeting shall stand adjourned to the same day in the next week, at the same time and place or to such other day or such other time and place, as the Board may determine. This means that the Board of directors has an option, unless the articles otherwise provide, to issue another notice by giving the required advance period of 21 clear days if the company proposes to hold the adjourned meeting at a time other than the same day and time next week.

2.    At an adjourned Meeting for the want of quorum, quorum is not present within half an hour from the time appointed, the Members present, being not less than two in number, will constitute the Quorum.

3.   If the general meeting is called upon the requisition of members and the required quorum is not present within half an hour from the time appointed for the meeting, in such situation the meeting shall stand dissolved.

4.    In case of an adjourned meeting or of a change of day, time or place of meeting, the company shall give atleast three days’ notice to the members either individually or by publishing an advertisement in the newspapers (one in English and one in vernacular language) which is in circulation at the place where the registered office of the company is situated.

5.  Once a notice of the meeting is given, it cannot be adjourned by a subsequent notice. The Board of Directors does not have this power. The proper course will be to hold a meeting and resolve the adjournment of it to any future convenient date.

6.     At an adjourned Meeting, only the unfinished business of the original Meeting shall be considered. Any Resolution passed at an adjourned Meeting would be deemed to have been passed on the date of the adjourned Meeting and not on any earlier date. An adjourned meeting is a continuation of original meeting, and not a fresh meeting. Therefore, every situation in adjourned meeting shall be determined as if it is original meeting.

7.   In case of Adjournment of AGM, the adjourned Annual General Meeting should be held within the maximum time-limit allowed by Section 96.

Related Post :

Adjournment of General Meeting – Analysis of Key Provisions

Quorum For General Meeting Under Companies Act 2013

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