Podcast
Questions and Answers
What is the time period for a company to hold its first annual general meeting after incorporation?
What is the time period for a company to hold its first annual general meeting after incorporation?
- Within 16 months (correct)
- Within 12 months
- Within 20 months
- Within 18 months
How often must a company hold subsequent annual general meetings?
How often must a company hold subsequent annual general meetings?
- Once every calendar year (correct)
- Once every quarter
- Twice a year
- Once every six months
What is the minimum notice period that must be given to shareholders before an annual general meeting?
What is the minimum notice period that must be given to shareholders before an annual general meeting?
- 14 days
- 30 days
- 21 days (correct)
- 45 days
What financial documents are considered during an annual general meeting?
What financial documents are considered during an annual general meeting?
Which of the following is NOT a consequence of failing to hold an annual general meeting?
Which of the following is NOT a consequence of failing to hold an annual general meeting?
In which case must the notice of the annual general meeting also be published in newspapers?
In which case must the notice of the annual general meeting also be published in newspapers?
What type of penalty is imposed on a listed company that fails to comply with AGM regulations?
What type of penalty is imposed on a listed company that fails to comply with AGM regulations?
Which procedure is NOT included in the pre-meeting process for an annual general meeting?
Which procedure is NOT included in the pre-meeting process for an annual general meeting?
What does Section 301 outline as a consequence for a company that fails to hold two consecutive annual general meetings?
What does Section 301 outline as a consequence for a company that fails to hold two consecutive annual general meetings?
What is the penalty level for a company, other than a listed company, that defaults on AGM compliance?
What is the penalty level for a company, other than a listed company, that defaults on AGM compliance?
Flashcards
What is an AGM?
What is an AGM?
An Annual General Meeting (AGM) is a mandatory meeting for every company in Pakistan, held once every year. It's a crucial meeting where shareholders get to discuss important topics about the company's performance and future.
When does the first AGM happen?
When does the first AGM happen?
The first AGM for a newly incorporated company must take place within 16 months from the date of incorporation.
When is the subsequent AGM?
When is the subsequent AGM?
After the first AGM, all subsequent AGMs must be held once in each calendar year within 120 days following the close of the company's financial year.
What happens at the AGM?
What happens at the AGM?
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What are the consequences of not holding an AGM?
What are the consequences of not holding an AGM?
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Who is exempted from AGMs?
Who is exempted from AGMs?
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How long is the notice period for an AGM?
How long is the notice period for an AGM?
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Where is the AGM held?
Where is the AGM held?
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What are the penalties for AGM default?
What are the penalties for AGM default?
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What is the difference between AGM and Board Meeting?
What is the difference between AGM and Board Meeting?
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Study Notes
Annual General Meeting (AGM)
- Application: Mandatory for every company to hold an annual general meeting.
- Time Period for Conveying Statutory Meeting:
- First AGM: within 16 months of incorporation.
- Subsequent AGMs: once per calendar year, within 120 days of the financial year's close.
- Extension of Time:
- Listed Companies: Commission can extend for 30 days.
- Other Companies: Registrar can extend for 30 days.
- Place of Meeting:
- Listed Companies: In the town where the registered office is located, or a nearby city. Commission can authorize holding the AGM in a different location.
- Other Companies: No specific requirement, preferably near the registered office.
- Pre-Meeting Procedures:
- Board of Directors Meeting: Discusses financial statements, auditor's report, director's report, agenda, director election, auditor appointment, draft notice, date, and time of meeting.
- Notice: 21 days' notice to shareholders, including
- Listed Companies: Notice to the Commission, a daily Urdu, and a daily English newspaper with circulation in the province where the stock exchange is located.
- Agenda of Meeting:
- Consideration of accounts, balance sheets, profit & loss accounts, directors' report, and auditors' report.
- Declaration of dividends.
- Appointment and fixation of remuneration for auditors.
- Election or appointment of directors.
- Penalty for Default in Compliance:
- Listed Companies: Level 2 penalty.
- Other Companies: Level 1 penalty.
- Consequence of Non-Holding of Annual Meeting:
- Fine.
- Registrar's direction under Section 147 to hold the meeting.
- Winding-up proceedings under Section 301 if a company fails to hold two consecutive annual general meetings.
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