Section 97 of CA 2013 : Section 97: Power Of Tribunal To Call Annual General Meeting

Explanation using Example

Imagine a company called "GreenTech Innovations Ltd." that has not conducted its Annual General Meeting (AGM) within the timeframe stipulated by the Companies Act, 2013. One of the shareholders, Mrs. Sharma, realizes that the company is in default of Section 96, which mandates the holding of an AGM. Concerned about the company's governance and her rights as a shareholder, Mrs. Sharma decides to take action.

She files an application with the National Company Law Tribunal (NCLT), invoking Section 97 of the Companies Act. The NCLT, after reviewing her application, orders GreenTech Innovations Ltd. to hold its AGM. Furthermore, the Tribunal, understanding the difficulty in achieving quorum due to the default, directs that the presence of just Mrs. Sharma, either in person or by proxy, will be sufficient to meet the quorum requirement for this AGM. Consequently, the AGM takes place with Mrs. Sharma in attendance, and it is considered as valid and compliant with the Companies Act, due to the Tribunal's orders under Section 97.