Purpose: To approve financial statements, declare dividends, appoint or reappoint auditors, and conduct any other business as per the agenda.
Timeline: The first AGM should be held within 9 months from the end of the financial year. Subsequent AGMs should be held within 6 months from the end of the financial year.
Exemption: Small companies, one-person companies, and dormant companies are exempted from holding an AGM.
Penalty: If a company fails to hold an AGM within the prescribed timeline, it will be liable for a penalty of up to Rs. 1 lakh. In case of repeated non-compliance, the penalty can increase up to Rs. 5 lakh.
Reporting Authority: The minutes of the AGM should be filed with the Registrar of Companies (ROC) within 30 days from the date of the meeting.
