Q.State the time limits within which a company must hold its first AGM and its subsequent AGMs under Section 96 of the Companies Act, 2013.

Section 96 fixes a longer window for a company's very first AGM than for every AGM held afterwards, in recognition that a newly incorporated company needs more time to close its first set of accounts.

Section 96(1) of the Companies Act, 2013 lays down separate time limits for the first AGM and every AGM thereafter.

First AGM: A company must hold its first AGM within 9 months from the date of closing of its first financial year. This is deliberately longer than the limit for later years, since a newly formed company needs extra time to finalise its very first set of financial statements. Critically, no extension of time can be granted for this first AGM, however special the reasons.

Subsequent AGMs: From the second year onward, every AGM must be held within 6 months from the date of closing of that financial year. In addition, the Act imposes a separate safeguard: the gap between two consecutive AGMs must never exceed 15 months, regardless of the 6-month deadline, to prevent a company from lawfully pushing its AGM date later and later each year.

Extension: For a subsequent AGM (never for the first), the Registrar of Companies may, for special reasons, grant an extension of time not exceeding 3 months. …

A common error is applying the 3-month extension rule to the first AGM as well — the Act explicitly disallows any extension for the first AGM, a …