Extension of Time for AGM/Annual Returns
Singapore Company Law allows private limited companies to forgo an AGM if all members of the company agree to a resolution to dispense the meeting.
The company can then submit its Annual Return without conducting an AGM.
How to Apply for Extension of Time for AGM
Asking for an extension is important, especially when your company is incapable of holding an AGM within the specified time frame. In accordance with section 175 or 201 of the Companies Act, it is possible for a company to apply for an extension of time (EOT) with ACRA before the due date.
ACRA will grant up to two months of extension only and the cost of an extension is S$200. Hence, it is prudent to follow the steps for first changing the FYE date, and then applying for an EOT, in the proper order to avoid unnecessary costs.
The EOT can be applied for by the company officer, such as the director, the secretary or a professional firm like Tianlong Services with the help of a legal SingPass on behalf of the company. This is done via BizFile+ (Local Company > Annual Filing > Extension of Time for AGM/Annual Return.
The key Annual General Meeting rules
Penalties for Failing to Hold an AGM
According to section 175 of the Companies Act, a company and any directors who fail to hold an AGM can face a fine of up to S$5,000. However, to avoid prosecution, ACRA allows companies and directors to pay a composition fee of S$300 for each breach.
An AGM is a compulsory meeting to discuss the financial performance and position of the company convey as well as its general business health to its shareholders. The meeting also serves the purpose of serving the shareholders with financial statements and raising any questions concerning the well-being of the company.
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Tianlong Services Pte Ltd are experts when it comes to adhering to Singapore’s company laws and regulations including matters related to AGMs and Annual Returns. Many companies rely on us to fulfil their annual statutory requirements. We can introduce you to the best industry compliance practices and update you on various statutory reporting requirements!
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