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Microlesson · 5-min read

Power of Tribunal to Call AGM [Section 97]

# Section 97 — Tribunal's Power to Call AGM

## When Does Section 97 Trigger?

When a company defaults in holding its AGM under Section 96. The remedy is judicial, not internal — the NCLT (Tribunal) steps in.

## Who Can Apply?

Any member of the company. Even a single member can apply.

## Powers of the Tribunal — Section 97(1)

The Tribunal may, notwithstanding anything in the Act or articles:

1. Call or direct the calling of an AGM, AND

2. Give such ancillary or consequential directions as it thinks expedient.

### The Quorum-Override Proviso

The Tribunal's directions may include a direction that:

> One member of the company present in person or by proxy shall be deemed to constitute a meeting.

This overrides the normal quorum requirements of Section 103 — useful when other members refuse to attend.

## Status of the Meeting So Called — Section 97(2)

The meeting held under Tribunal's direction shall, subject to its directions, be deemed to be an AGM of the company under the Act. So it counts for all statutory purposes (laying of financial statements, appointment of auditor, etc.).

## Quick Comparison: Section 96 vs Section 97

AspectSection 96 (Normal AGM)Section 97 (Tribunal AGM)
Who callsBoardTribunal (on member's application)
TriggerStatutory obligationDefault by company in holding AGM
QuorumAs per Section 103Even 1 member can constitute meeting
StatusAGMDeemed AGM

Worked example

### Example 1

Example 1: ABC Ltd. failed to hold its AGM for FY 2024-25 within the statutory due date. Mr. X, holding 50 shares, applies to NCLT. ✅ NCLT can direct AGM to be called and may direct that Mr. X alone (in person or by proxy) shall constitute the meeting.

### Example 2

Example 2: A meeting called under Section 97 transacts the ordinary business of adopting accounts and appointing auditors. Is it valid? ✅ Yes — by virtue of Section 97(2), it is deemed to be an AGM, so all ordinary business is validly transacted.

⚠️ Common exam mistakes

  • Believing the Tribunal can only act 'on its own' — actually it acts on the application of any member (not suo motu under Section 97, unlike Section 98).
  • Forgetting that the Tribunal can override the quorum requirement (1 member = meeting) — this is a unique power.
  • Confusing Section 97 (AGM) with Section 98 (any other meeting other than AGM). Section 97 = AGM only.
Bare-Act text Section 97 · The Companies Act, 2013 · click to expand
Section 97(1): If any default is made in holding the annual general meeting of a company under section 96, the Tribunal may, notwithstanding anything contained in this Act or the articles of the company, on the application of any member of the company, call, or direct the calling of, an annual general meeting of the company and give such ancillary or consequential directions as the Tribunal thinks expedient: Provided that such directions may include a direction that one member of the company present in person or by proxy shall be deemed to constitute a meeting. (2) A general meeting held in pursuance of sub-section (1) shall, subject to any directions of the Tribunal, be deemed to be an annual general meeting of the company under this Act.
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