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CA Intermediate · Corporate and Other Laws · Management & Administration

Zenith Retail Ltd, a company, has not conducted an AGM for its financial year within the period allowed, and the Registrar has not granted any extension. The company has 10 directors. The Board wants to know the correct position on extension. Which statement is correct under the Companies Act, 2013?

The gap between two AGMs cannot exceed 15 months, and the Registrar may extend the time for holding an AGM other than the first by up to three months for special reasons. A Board resolution cannot skip an AGM.

  1. AThe Registrar may extend the time for holding an AGM (other than the first AGM) by up to three months, and the gap between two AGMs must not exceed 15 monthsCorrect
  2. BThe Registrar may extend the time by up to six months, and the gap between two AGMs must not exceed 18 months
  3. CThe Tribunal alone may extend and the gap between AGMs is unlimited
  4. DThe AGM can be skipped for a year by a board resolution

Explanation

An AGM must be held every calendar year, with not more than 15 months between two AGMs. The Registrar may, for any special reason, extend the time for any AGM (other than the first) by a period not exceeding three months. A six-month extension or Board skipping the AGM is not permitted.

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