The Annual General Meeting (AGM) is held in order to create an interaction between the management and the company's shareholders. The Companies Act, 2013 makes it necessary to hold an annual general meeting to review the annual results, the appointment of the auditor, and so on. To execute the AGM, a firm should follow the procedures under the Companies Act, 2013. The Annual General Meeting of Private Limited Companies and Limited Companies in India is a legal obligation. An AGM must be held annually by any corporation, whether public or private, limited by shares or guarantees, with or without share capital or an unrestricted company. The Annual General Meeting is an annual meeting held by the company's shareholders and directors. The audited accounts of the Company are accepted at the Annual General Meeting and the selection of auditors and directors is finalized. Compensation of officials, approval of planned dividends, and any other concerns presented by shareholders are other things that can be decided in an AGM. After the end of each financial year, all firms, except one person company (OPC), should conduct an AGM. A business is expected to hold its AGM within six months of the end of the financial year. However, in the case of the first annual general meeting, in less than nine months from the end of the first financial year, the company will hold an AGM. In such cases, where the first AGM is already held, in the year of incorporation, there is no need to hold another AGM. Note that the time period does not exceed 15 months between the two annual general meetings.

The procedure for holding the Annual General Meeting starts with giving a valid 21-day notice from the organization to its representatives to call the AGM. The location, date, and day of the meeting and the time at which the meeting is scheduled should be indicated in the notice. The notice should also state the business that is to take place at the AGM. This notice must be given to all directors of the company, all the statutory auditors, and all the members of the company.

The matters to be discussed in the Annual General Meeting are Appointment of directors to replace the retiring directors, Consideration of the Director’s report and auditor’s report, Consideration and adoption of the audited financial statements, Dividend declaration to shareholders, Appointment of auditors, and deciding the auditor’s remuneration and any other business. An ordinary resolution will be passed for the ordinary business of the company where the votes cast in favor are greater than the votes cast against the resolution. However, in the case of special business transactions, the resolution can, depending on the relevant legal provisions, be carried on as an ordinary resolution or a special resolution. At least 75 percent of the votes in favor of the resolution are required for a special resolution. For Quorum of the company, in the case of a private company, it is 2 members wherein for a public company the quorum is five members if the number of members is less than a thousand, fifteen members if the number of members is more than a thousand but less than five thousand and thirty members if the number of members is more than five thousand. Members of the company have the right to participate in the AGM and to vote. By a physical ballot or postal ballot or by e-voting, members may cast their votes. Members may even appoint proxies to attend an AGM and vote on their behalf of them.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Legal and Tax shall not be responsible for any errors caused due to human error or otherwise.