Answer By law4u team
Under Indian law, not holding an Annual General Meeting (AGM) as required can attract penalties for both the company and its officers under the Companies Act 2013. The AGM is a statutory obligation for most companies, and failure to conduct it within the prescribed time limits is considered non-compliance. For the company itself, the penalty can include a fine of up to ₹1,00,000, and in case the default continues, there may be an additional fine of ₹5,000 for each day the default continues beyond the due date. For officers in default, such as directors or company secretaries responsible for convening the AGM, the law prescribes a personal penalty of up to ₹25,000. The Companies Act emphasizes that the AGM is not merely a formal requirement but a mechanism for shareholder participation and corporate governance. Therefore, repeated or prolonged failure to hold AGMs can also lead to action by the Registrar of Companies (RoC), which may include issuing notices, initiating prosecution proceedings, or requiring explanations from the directors. In summary, failing to hold an AGM on time exposes the company to financial penalties and its officers to personal fines, reflecting the seriousness of this statutory obligation under Indian corporate law.
