It is compulsory for Private Limited Companies to hold AGM for its shareholders. A newly incorporated company must hold its first AGM within 18 months from the date of incorporation. Subsequently, an AGM must be held annually and each not more than 15 months after the previous one.
At the AGM, the Director must present the company’s annual financial statements and allow the shareholders to raise any queries regarding its investments or other issues. There should also be proper minutes and records of the AGM proceedings.
However, if your company is a Private Limited Company and all members (shareholders) agreed to dispense with the holding of AGM, you can do so through a resolution, although the company’s financial statement still must be circulated to all members for approval.
The company needs to file its Annual Returns within one month of the AGM. This applies even if you have dispensed the holding of AGM or if your company is a dormant company (In this case, you only need to declare that the company has been dormant).