Section 121 of CA 2013 : Section 121: Report On Annual General Meeting

Explanation using Example

Imagine XYZ Corp, a listed public company, holds its Annual General Meeting (AGM) on April 1, 2023. According to Section 121 of the Companies Act, 2013, XYZ Corp is required to prepare a report on this AGM. The report must confirm that the AGM was conducted in accordance with the Act and the rules made under it. The company prepares this report and includes details such as the date of the meeting, the resolutions passed, and the manner in which the meeting was conducted.

XYZ Corp is then required to file this report with the Registrar of Companies (RoC) within 30 days of the conclusion of the AGM, which means by May 1, 2023. If XYZ Corp fails to file this report by the due date, it will be subject to a penalty of one lakh rupees. If the failure continues, an additional penalty of five hundred rupees per day will be charged until the report is filed, up to a maximum penalty of five lakh rupees.

Furthermore, if XYZ Corp does not comply, not only is the company penalized, but every officer of the company who is in default will also face a personal penalty starting at twenty-five thousand rupees, with an additional five hundred rupees for each day the failure continues after the first day, up to a maximum of one lakh rupees.