Quorum for the Annual General Meeting

What is Annual General Meeting?

An Annual General Meeting (AGM) is held between the management and the shareholders of the company to have an interaction about the company’s business affairs. The Companies Act, 2013 has made it a compulsory statutory regulation to hold an Annual General Meeting to discuss the yearly results, auditor’s appointment, director’s appointment, etc. In an AGM, the shareholders with voting rights vote on the agenda, which is brought to the floor, and the management presents the financial statements of the company along with the auditor’s report....

Legal Requirement for Holding an Annual General Meeting

Provisions related to the Annual General Meetings (AGMs) are mentioned in Section 96 of the Companies Act, 2013. This section defines all the general requirements for companies to hold an AGM, specifies the timeline for conducting it, and also discusses the provisions related to the first AGM for newly incorporated companies....

Quorum for the Annual General Meeting

Section 103 of the Companies Act, 2013 states the provisions regarding the Quorum. Quorum means the minimum number of members to be present to constitute a valid meeting. Section 103 states that unless the articles of the company provide for a larger number requirement, the Quorum for the meeting shall be as mentioned:...

Issues undertaken at the Annual General Meeting

1. Review of the Financial Statements: Management puts the financial statements on the floor. The income statement, balance sheet, and cash flow statement are presented to shareholders to adopt the financial statements. Management also discusses another significant financial event that occurred over the past year....

Conclusion

Every company is managed by its officers and shareholders. Shareholders and management need to meet and discuss business affairs and other important aspects of the company. Section 96 of the Companies Act of 2013 establishes the provision of an Annual General Meeting, where the act has a statutory requirement to conduct an AGM, except in the case of One Person Company (OPC). AGM is held so that special and ordinary business of the company can be discussed, among which the appointment of a director and auditor is considered important. The amount of the dividend is also decided by the management. The financial statements and the auditor report are also laid down in the AGM for shareholders to adopt and discuss. The Companies Act, 2013 has specified certain statutory requirements that are to be followed to conduct an AGM. Some of the important provisions are the quorum required, the sending of notice, the filing of a resolution, etc....

Frequently Asked Questions (FAQs)

1. Why is an Annual General Meeting held?...