Meaning of annual general meeting
(Meaning of Annual General Meeting) Annual general meeting means an important meeting of the members of the company. It is legally mandatory for every company (except one person company) to convene and organize this meeting every year.
Generally it is necessary to do normal business in the annual general meeting, but companies can also do any special work in this meeting. Therefore, in this meeting, the progress of the company is reviewed throughout the year, annual accounts are discussed and accepted, directors and auditors are appointed and dividend is recommended.
Every company has to hold its first Annual General Meeting within 9 months from the end of its first financial year. Every subsequent annual general meeting shall be held within 6 months from the end of the financial year of the company. There should not be more than 15 months between two annual general meetings. If the registrar so desires. Except for the first annual general meeting, the duration of other annual general meetings can be extended for a further period of 3 months.
Every Annual General Meeting may be convened during office hours on a day not being a public holiday, at the registered office of the company or in any part of the city, town, village in which the registered office of the company is located.
A clear notice should be sent 21 days in advance to all the members of the company, the auditors and other concerned persons for convening the annual general meeting. Proxy form and schedule should be attached to this notice.