Annual General Meeting (AGM) Lecture Notes

[ **ANNUAL GENERAL MEETING**] **[SECTION 132]** **Application:** Mandatory on Every Company to hold annual general meeting **Time Period for Conveying Statutory Meeting:** **First AGM:** Within 16 months from the date of incorporation (for First Annual General Meeting), and **Subsequent AGM**...

[ **ANNUAL GENERAL MEETING**] **[SECTION 132]** **Application:** Mandatory on Every Company to hold annual general meeting **Time Period for Conveying Statutory Meeting:** **First AGM:** Within 16 months from the date of incorporation (for First Annual General Meeting), and **Subsequent AGM** i. Once in each Calendar Year ii. within a period of 120 days following the close of its financial year **Extension of Time:** i. In case of Listed Company: ii. In Case of Other Company: **Place of Meeting:** i. In case of Listed Company: ii. In Case of Other Company: **Pre-Meeting Procedure:** i. Board of Directors Meeting: BoD considers financial statements, auditor's report, director's report, agenda of meeting, election of directors, appointment and remuneration of auditors, draft of notice, place, date and time of meeting, etc. ii. Notice: 21 days' Notice shall be given to every Shareholder before date of meeting iii. In case of a listed company, such notice shall be sent to the Commission iv. In case of Listed Company, Notice will also be published in one Daily Urdu Newspaper and one Daily English Newspaper having circulation in the Province in which the Stock Exchange on which Company is listed, is situated. **Agenda of Meeting:** i. Consideration of the accounts, balance sheets, profit and loss accounts and report of the directors and auditors ii. Declaration of Dividends iii. Appointment and fixation of remuneration for auditors\\ iv. Election or appointment of directors **Application:** Nothing in this section shall apply to a single member company **Penalty for Default in Compliance:** Company and every officer of the company who knowingly and willfully authorises or permits such default shall be liable **In case of a Listed Company** - Penalty of level 2 on the standard scale **In case of Other Company:** - Penalty of level 1 on the standard scale **Consequence of Non Holding of Annual Meeting:** i. Fine ii. Direction under Section 147 by the Registrar to hold meeting iii. Winding up proceedings can be initiated against company under Section 301 if Company fails to hold Two Consecutive Annual General Meetings