Posted in ACS Prem Munal, AGM, Annual General Meeting, Draft format of Companies Act 2013, ROC, Shorter notice

Approval by member for convening AGM in any part of India

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I hope you’re remembered that the MCA in its recent notification dated 13th June 2018 has allowed unlisted companies to convene its AGM in any part of India subject to prior unanimous approval from all the members either in writing or electronically.

Accordingly, it’s appeared from the said amendment that the process to get an approval from the members shall be commenced from a company’s part.

However, to seek such an approval from all the shareholders seems tedious task if the members are in very large quantity. On the other hand, the implementation of the provision and feasibility to seek such consent may be very easy in below mentioned companies:

  1. The number of members are very less (i.e., ten or less)
  2. The company has no dispute with its members
  3. The company is a closely held.
  4. The shareholding in very few hand
  5. Any other case like the email ids/ latest addresses are available to the company.

In my opinion, if the above said situation do exist, it’s an easy to seek such approval. In my opinion also, the proposal to seek such an approval will be first moved by the company which later on accorded by the member.

A company may choose the below mentioned format to avail such prior approval:

Smile


Mr/Ms/Mrs………………….

Member

Address

Email id

Sub: Seeking approval to conduct Annual General Meeting in any part of India

We, ABC Company Limited, having its regd office at……………………………………………………………………, hereby do inform you that the Company is in a process of conducting its 27th AGM to be held on or before the due date 30th September 2018.

We further wish to inform you that the Central Government in its recent amendment has allowed us to conduct such meeting in any part of India., therefore, the Board of the Directors in its Board meeting has recommended to conduct such meeting at its main corporate cum working office which shall enable us to avoid heavy expenses and also to increase shareholders value. 

Therefore, it shall be a great contribution from your side to accord your approval on or before the ………………………….. (date, in my opinion it should be at-least ten to eleven days prior to AGM).

Thanking you

For ABC Company Limited

 

Company Secretary

Email id

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Author:

This is ACS Prem Munjal have an relevant experience of 3 years on independently handling of Company Secretary. In my career so far have been served to multi sized companies based out in Pune (Maharashtra), Delhi, and Karnal. www.governanceprofessional.wordpress.com/acs-prem-munjal

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