When to hold a Company’s Annual General Meeting (AGM)

Every Company, other than a One Person Company (OPC) has to hold an Annual General Meeting (AGM).

The calculation of the date to hold an AGM is like a puzzle. There are certain parameters within which it has to be held. 
The parameters are as follows:
Period between 2 AGMS should not exceed 15 months.
Accounts should be adopted in the AGM within 6 months of the close of the f.y.
An AGM should be held once in every calendar year.

Other conditions:
It has to 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 is situated.
AGM of an unlisted company may be held at any place in India if consent is given in writing or by electronic mode by all the members in advance:
It has to be held during business hours, i.e., between 9 a.m. and 6 p.m. 
It cannot be held on a National Holiday (26th January, 15th August, 2nd October)

Also, before we begin, it is necessary to understand the concept of financial year for which accounts have to be prepared:

“Financial Year",

For any company or body corporate:  means the period ending on the 31st day of March every year.

For a newly incorporated Company: Where a Company has been incorporated on or after the 1st day of January of a year, the period ending on the 31st day of March of the following year.

1st AGM:
A newly incorporated Company has to hold its first AGM within a period of nine months from the date of closing of the first financial year of the Company, alongwith complying with all the ‘Other Conditions’ as stated above.

Further, if the Company holds its first AGM as aforesaid, it shall not be necessary for it to hold any AGM in the year of its incorporation.
Thus, the above three parameters are not applicable on the 1st AGM of a Company.

Case Study 1:
When should a Company incorporated on 3rd January 2020, hold its 1st AGM - in the year 2020 or 2021?

The Company has 2 options.

Option A:
It can prepare its Accounts for the period from 3rd January 2020 to 31st March 2020. Therefore, the Company can hold its 1st AGM latest by 31st December 2020.

Option B:
It can prepare its Accounts for the period from 3rd January 2020 to 31st March 2021. Therefore, the Company can hold its 1st AGM latest by 31st December 2021.

Case Study 2:
When should a Company incorporated on 3rd April 2020, hold its 1st AGM? 

The Company has to close its accounts on 31st March 2021. Therefore, the Company can hold its 1st AGM latest by 31st December 2021.

Subsequent AGMs
All the above three parameters have to be complied with to convene a valid AGM, alongwith complying with all the ‘Other Conditions’ as stated above.

Case Study 3:
The Company held its previous AGM on 15th July 2019. When should the Company hold its AGM in 2020?

1st Parameter: Period between 2 AGMS should not exceed 15 months.
Thus, the Company can hold the AGM latest by 15th October 2020.
2nd Parameter: Accounts should be adopted in the AGM within 6 months of the close of the f.y.
Since Accounts have been closed on 31st March 2020 and they have to be adopted within 6 months of their closure, the AGM will have to be held latest by 30th September 2020.
3rd Parameter: An AGM should be held once in every calendar year.
The Company can hold on any date latest by 31st December 2020.

Thus, based on the above the AGM can be held on three differing dates, but only 1 date fits all three parameters, that date being 30th September 2020. 15th October does not satisfy the 2nd parameter nor does 31st December 2020.

Case Study 4:

The Company held its previous AGM on 23rd June 2019. When should the Company hold its AGM in 2020?

1st Parameter: Period between 2 AGMS should not exceed 15 months.
Thus, the Company can hold the AGM latest by 23rd September 2020.
2nd Parameter: Accounts should be adopted in the AGM within 6 months of the close of the f.y.
Since Accounts have been closed on 31st March 2020 and they have to be adopted within 6 months of their closure, the AGM will have to be held latest by 30th September 2020.
3rd Parameter: An AGM should be held once in every calendar year.
The Company can hold on any date latest by 31st December 2020.

Thus, based on the above the AGM can be held on three differing dates, but only 1 date fits all three parameters, that date being 23rd September 2020. 15th October does not satisfy the 1st parameter nor does 31st December 2020.