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Issues:
Challenge to postponement of annual general meeting of a company, legal obligation to conduct the meeting, justification for deferring the meeting, failure to comply with statutory requirements, consequences of not convening the meeting, direction to convene the meeting within a specified timeframe. Analysis: The petitioner, a shareholder and candidate for director, challenged the postponement of the annual general meeting (AGM) of the company, which was scheduled for a specific date as per the Companies Act, 1956. The first respondent deferred the meeting citing a judgment directing the Government to consider representations by certain respondents. The court noted the statutory obligation to hold the AGM within a specified timeframe and found no valid reason for the delay beyond the deadline. The court emphasized that the judgment did not prevent the AGM from being conducted as required by law. Consequently, the first respondent was directed to convene the AGM within one month based on the shareholders' list as of the original meeting date, with no new director nominations allowed. The court considered the arguments presented by various parties, including the petitioner, first respondent, and additional respondents, regarding the justification for deferring the AGM. The first respondent's reasoning based on the judgment directing the Government's actions was deemed insufficient to justify non-compliance with the statutory requirements for convening the AGM. The court highlighted that the failure to hold the AGM constituted a continuing default with potential consequences under the Companies Act. Therefore, the court ordered the first respondent to promptly convene the AGM in accordance with the law, emphasizing the importance of adhering to the statutory provisions and timelines. The court addressed the concerns raised by the additional respondents regarding the disposal of their representations by the Government within a specified timeframe. While the additional respondents requested a direction for timely disposal of their representations, the court clarified that such an order was unnecessary as the timeframe for disposal had already been specified in a previous judgment. Consequently, the court disposed of the original petition, emphasizing the need for the first respondent to promptly convene the AGM and adhere to the statutory requirements without further delay.
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