My company in Thiruvananthapuram has not given proper AGM notice to shareholders; what is the statutory notice period and what are the consequences of non-compliance?
FA Asked by Faisal Ahmed from India
Quick Answer
Under Section 101 of the Companies Act, 2013, a twenty-one clear days' notice must be given for an annual general meeting, unless a shorter notice is consented to by at least ninety-five percent of the members entitled to vote.
Detailed Legal Analysis
Under Section 101 of the Companies Act, 2013, a twenty-one clear days' notice must be given for an annual general meeting, unless a shorter notice is consented to by at least ninety-five percent of the members entitled to vote. The notice must specify the date, time, venue, and business to be transacted.
Failure to give proper notice renders the AGM and its resolutions void and may attract penalties under Section 99. You may approach the NCLT under Section 98 to call the AGM if the directors default.
The Kerala High Court may be approached if the AGM is conducted without proper notice and shareholders' rights are violated. The Kerala Rent Control Act 1963 on public notices and company meetings may also apply.
Rectification involves reconvening the AGM with proper notice and obtaining shareholder ratification.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.