When to conduct the Annual General Meeting

As per Section 166 of the Companies Act,1956 Every Company, which is Public or Private, limited by Shares or Guarantee, with or without share capital or Unlimited Company is required to be conduct Annual General Meeting once a year.Every Company must in each year hold an Annual General Meeting not more than fifteen months from the date of Last  annual general meeting of a company.No  approval from regulatory authority is required for hold such Meeting.

As per Section 210 (3) (b) of the Companies Act,1956  everry company is required to hold its subsequent Annual General Meeting within six months from the end of the Financial year.

While reading Sections 166 and 210(3)(b) of the Companies Act,1956 there seems to be some contradictions between the provisions.If the Company follows section 166 and conducts Annual General Meeting within 15 months from the end of the Last Annual General Meeting( taking into consideration of Three Months extended time  given by Registrar of Companies),there could be non-compliance of Section 210(3)(b), for not holding the Annual General Meeting within Six Months from the end of the Financial year.

To overcome the non-compliance situation, the Department of Company Affairs (Now Ministry of Corporate Affairs) has advised that the Annual General Meeting of the Company to be held earlier of the following dates : vide its Circular No.8/45(166)64-PR dated 12-01-1965:

-Six Months from the date of Close of the Financial year.(Section 210(3)(b)

-Within 15 Months from the Last Annual General Meeting.(Section 166(1)

- Last Date of Next Financial year.

Therefore in my opinion, a company can convene a Annual General Meeting within the Periods advised by the Ministry of Corporate Affairs to avoid the Penalty and Contravention of the Sections 166 and 210 of the Companies Act,1956.