Question
A public company holding ordinary shares must hold an
annual meeting of its members. Under which section of the Companies Act, 2013 is the holding of the Annual General Meeting made mandatory?Solution
Section 96 of the Companies Act, 2013 provides: "Every company shall in each financial year hold in addition to any other meetings, a general meeting as its annual general meeting and shall conduct the meeting in accordance with the provisions of this section." This section prescribes the requirement for holding an AGM. The AGM must be held within 6 months after the close of the financial year. Meetings other than AGM are addressed under different sections; Section 100 deals with quorum for general meetings, Section 101 addresses adjournment of meetings, Section 106 addresses voting rights, but Section 96 specifically mandates the holding of AGM.
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