Procedure to seek extension of time for holding AGM

Procedure-seek-extension-of-time-for-holding-AGM

 

Procedure to seek extension of time for holding AGM




The extension of time for 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 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 extension of time certified by the chartered accountant or company secretary or cost accountant in practice.
The main reason for seeking extension in time may be delay in finalising the accounts due to unavoidable circumstances. In such situation the best course for a company is to hold the annual general meeting by the due date and get 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 extension in time.
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