As per new circular of MCA vide letter no. 8/5(1669/65-pr dated 21-1-1963, Annual General Meeting can be held on Sunday in certain cases

Case 1: Can an adjourned Annual General Meeting can be held on Sunday.

As per circular no 8/16(1)/61-pr, there is no contravention of sec. 166(2) if the adjourned AGM comes to be accidentally held on a public holiday.

Example:  AGM called on 29^th Sep, 2012, adjourned to 30^th Sep., 2012 which happened to be public holiday.

Remarks: The provisions of Section 174 have to be complied with i.e. board meeting must be called to fix date and time of adjourned AGM to 30^th September.

 

Case 2:  Annual General Meeting can be held on Sunday if procedure to sec. 166(2) has been followed.

The provisions of Sec 166(2) allow private and public limited company to fix date, time and place of AGM as discussed below:

A)    In case of a private company which is not a subsidiary of a public company: there are three options to fix date, time and place of AGM:

• Option 1:  by its articles fix the date for its annual general meetings
• Option 2:  by a resolution passed in one annual general meeting fix the time for its subsequent annual general meetings
• Option 3:  by a resolution agreed to by all the members thereof, fix the date for its annual general meeting.

B)   In case of a public company or a private company which is a subsidiary of a public company: there are two options has been provided to fix date, time and place of AGM:

• Option 1: may by its articles fix the date  for its annual general meetings
• Option 2: may also by a resolution passed in one annual general meeting fix the time for its subsequent annual general meetings

Suppose a private limited company on 31^st July, 2012, passed a resolution agreed by all members to fix date of all AGM to 30^th Sep every year. Now 30^th September, happens to be Sunday. AGM held on 30^th September, 2012.

Remarks: AGM is valid on the following two grounds:

Ground 1: AGM inadvertently held on Sunday as a resolution agreed by all members was passed. As per circular no 8/16(1)/61-pr, there is no contravention of sec. 166(2) if the adjourned AGM comes to be accidentally held on a public holiday. If the adjourned AGM can be valid then AGM agreed by all members on 30^th September every year can also be valid, even if it eventually comes to Sunday.

Ground 2:  As per the provisions of Section 166(2) allow Private Ltd Company and Public Ltd Company to hold AGM on a day and place agreed upon by its members. When the proviso allows these companies to fix date and place of AGM by following certain procedure, what is stated in sec 166(2) itself cannot be made applicable to these companies.

Case 3: when date of AGM of 2012 has been fixed in AGM of 2011

A private ltd company as well as public ltd company may also by a resolution passed in one annual general meeting fix the time for its subsequent annual general meetings (proviso 2 to sec 166(2)) :

 Example: ABC Ltd by a resolution passed in  its AGM on 30^th September, 2011 , fixed the time for its next AGM on 30^th September , 2012 at 11a.m. now 30^th September, happens to be Sunday. AGM held on 30^th September, 2012.