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    Extra-Ordinary General Meeting should be held at a place within India ?

    Posted By : SARIKA / Published on : 30-Sep-2022 07:43 AM / View : 382 / Comment : 1

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    As per the Secretarial Standard 2, serial no. shall be given to each extra-ordinary general meeting held by the company after the secretarial standards came into force from 1st July, 2015. Annual General Meetings shall be held either at the registered office of the company or at some other place within the city, town or village in which the registered office of the company is situated, whereas other General Meetings may be held at any place within India.

    Explanation to Rule 18 of the Companies (Management and Administration) Rules, 2014, prescribes that the Extra-Ordinary General Meeting should be held at a place within India. Thus, an Extra-Ordinary General Meeting should be held only in India though not necessarily within the city, town or village in which the Registered Office of the company is situated.

    However, Clause 27 of the Companies (Amendment) Bill, 2016 seeks to amend sub-section (1) of section 100 of the Companies Act, 2013 to allow the wholly owned subsidiary of company incorporated outside India to hold its extra ordinary general meeting outside India. As per Clause 27, in section 100 of the principal Act, in sub-section (1), the following proviso shall be inserted, namely:—

    "Provided that an extraordinary general meeting of the company, other than of the wholly owned subsidiary of a company incorporated outside India, shall be held at a place within India."
    Read more on : place within india held should ordinary general meeting extra

    • Rule 18 of the Companies (Management and Administration) Rules, 2014, does prescribe that an Extraordinary General Meeting (EGM) should be held at a place within India. The rule states that "Every general meeting other than an annual general meeting shall be called by giving not less than clear twenty-one days' notice either in writing or through electronic mode in such manner as may be prescribed and shall be held at a place within India."

      Therefore, as per the rule, an EGM must be held in India, but it does not necessarily have to be held in the same city, town, or village in which the registered office of the company is situated. The company may choose a suitable venue for the EGM, taking into consideration the convenience of the shareholders and any applicable legal requirements.

      In case the articles of association do not specify a location for holding the EGM, the Board of Directors can determine the same. In such a scenario, the Board may consider various factors, such as the convenience of the shareholders, the availability of suitable venues, and any applicable legal requirements.

      04-04-2023 / 09:21:38 AM
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