Penalties Section 99, Companies Act: penalty for failing to hold the AGM
Section 99, Companies Act: penalty for failing to hold the AGM
Companies Act 2013 — 99
The Penalty
Up to ₹1,00,000 + ₹5,000/day continuing default
- Cap
- Fine of up to ₹1,00,000 plus up to ₹5,000 per day of continuing default (s.99); imposed by the court
- Calculation base
- Days after the s.96 AGM due date
- Period
- Continuing default until AGM held or Registrar extension granted (s.96(1) third proviso).
When does this apply?
Failure to hold AGM within the s.96 timeline (typically by 30 September of the following FY) without a Registrar-granted extension under the s.96(1) third proviso.
Calculate this amount
This estimate applies only the rate and caps published in the authored rule for this page.
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| 60-day delay past 30 Sep — company + officer | Up to ₹1,00,000 + ₹5,000 × 60 = up to ₹4,00,000 exposure | ₹4,00,000 |
How it is levied
s.99 makes the default punishable with fine, so it is a court fine, not a penalty adjudicated u/s 454. Extension of up to 3 months (not for the first AGM) can be sought from the Registrar under the s.96(1) third proviso before the due date.
Confirm the current initial-fine and per-day amounts — Companies Amendment Acts have periodically revised these; the ₹5,000/day continuing figure comes from s.99 as it stands.