Launch offer — 25% off with code LAUNCH-25 See plans →
Microlesson · 5-min read

AGM — Exemptions for Section 8 and Government Companies [Section 96]

# AGM — Special Rules for Section 8 & Government Companies

## The Core Idea

The general rule under Section 96(2) is strict: every AGM must be held during business hours (9 a.m. to 6 p.m.), on a day that is not a National Holiday, and at the registered office (or within the same city/town/village).

However, two categories of companies get relaxations — but only if they are compliance-clean.

## 1. Section 8 Company (Non-profit) Exemption

An extra proviso is inserted into Section 96(2):

> The time, date and place of each AGM shall be decided in advance by the Board, having regard to directions (if any) given by the company in its general meeting.

What this means in practice:

  • A Section 8 company is not strictly tied to the registered office or business hours.
  • The Board has the flexibility to fix the meeting at any time/date/place — but it must respect any directions previously given by the company in general meeting.

## 2. Government Company Exemption

Section 96(2) is re-read so that the AGM can be held at:

  • the registered office, OR
  • any other place within the city/town/village where the registered office is situated, OR
  • such other place as the Central Government may approve.

A Government company can therefore hold its AGM at a completely different location if the Central Government approves.

## ⚠️ The Compliance Condition (CRITICAL)

Both exemptions are conditional. They apply only if the company has NOT defaulted in filing:

  • Financial statements under Section 137, AND
  • Annual return under Section 92.

If there is any such default, the company loses the exemption and must follow the general rule in Section 96(2).

## National Holiday — Definition

Explanation to Section 96(2): "National Holiday" means a day declared as such by the Central Government.

## Unlisted Company — Place of AGM

Under the proviso to Section 96(2), an unlisted company may hold its AGM at any place in India if all the members give consent in writing or by electronic mode in advance.

Worked example

### Example 1

Example 1: XYZ (Section 8) Ltd. wants to hold its AGM at 7:30 p.m. at a community hall outside the registered office town. It has filed all returns under Section 92 and 137 on time. ✅ Permissible — Board can fix any time/date/place, and the compliance condition is satisfied.

### Example 2

Example 2: ABC Government Ltd. defaulted in filing its annual return last year. It wants the Central Government's approval to hold the AGM in a different city. ✅ The CG approval route is not available — the exemption is lost because of the Section 92 default. AGM must be held at the registered office (or within the same city/town/village).

### Example 3

Example 3: Unlisted Star Pvt. Ltd. (not Section 8 / not Government) wants to hold its AGM at its branch office in Goa, while its registered office is in Mumbai. ✅ Allowed only if all members give prior written/electronic consent.

⚠️ Common exam mistakes

  • Forgetting that the Section 8 / Government company exemptions are conditional on non-default in filing Section 92 (annual return) and Section 137 (financial statements).
  • Confusing the Section 8 exemption (Board decides date/time/place) with the unlisted-company proviso (all members must consent to a different place in India).
  • Assuming 'National Holiday' is the same as a State holiday — only days declared by the Central Government qualify.
  • Thinking a Government company can hold its AGM anywhere automatically — it needs Central Government approval for places outside the registered-office city/town/village.
Bare-Act text Section 96(2) (with MCA Notifications/Exemptions for Section 8 and Government companies) · The Companies Act, 2013 · click to expand
Section 96(2) [as modified]: For Section 8 companies — 'Provided further that the time, date and place of each annual general meeting are decided upon before-hand by the board of directors having regard to the directions, if any, given in this regard by the company in its general meeting.' For Government companies — 'Every annual general meeting shall be called during business hours, that is, between 9 a.m. and 6 p.m. on any day that is not a National Holiday and shall be held either at the registered office of the company or at such other place within the city, town or village in which the registered office of the company is situate or such other place as the Central Government may approve in this behalf.' Both exemptions apply only where the company has not defaulted in filing under Section 137 or Section 92.
Now that you've read this — what's next?
Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.
Start 15-min diagnostic