As directed by the Companies Act 2013, the annual general meeting (AGM) for any budding new company is required to be held within 9 months from the conclusion of the first financial year in the event of the first AGM being held.
Generally, for other companies, AGMs are required to be held within 6 months of commencement from the end of the financial year. So clearly, the facility is acquired by companies only for their first AGM.
A company is likely to apply for an extension if it fails to operate the AGM within the due date provided it has to write to the Registrar of Companies regarding the same.
Please note: No extension has been provided for companies holding their AGM due date for the first time for the new company. The extension provided may be maximum for a period of 3 months.
The AGM is an annual requirement as directed by law for all (ROC) registered companies in India. The deadline calculated by the legal authorities is from the end of each financial year.
What is the FY in the case of a newly incorporated company under the Companies Act 2013?
As recorded in Section 2 (41) of the Companies Act 2013, the financial year is the term ending on 31 March. If a company starts after January 1, the financial year of that company will end on March 31 of the following year. The 6-month or 9-month timeframe for operating the AGM is calculated from the end of the month of March. An example is shown below:
Case 1: The company has been started on 19 January 2019, so the company has two options, either it can close the financial year in March 2019 or March 2020 as the company starts after 1 January 2019.
If the company is willing to close FY in March 2019 then the AGM deadline will be on or before 31 December 2019 and if the company opposes the closure of FY in March 2020 then the due date of operation of AGM is 31 December 2020.
Case 2: For example, if the company has started functioning from 15 June 2018, then the only option for this is to close the financial year in March 2019 and the deadline for operations of AGM is on or before 31 December 2019.