The Legal Basis For Applying For Extension On The Holding Of An AGM
An Annual General Meeting or AGM is a lawful gathering of company directors and shareholders which aims to give the latter an accurate status update of the company’s accounts, particularly on its solvency. This is done within 18 months of a newly incorporated company’s existence, and every subsequent year with no more than a 15-month gap between two AGMs. A month after the holding of the AGM, a company is required to submit its Annual Returns to the Accounting and Corporate Regulatory Authority (ACRA).
In certain cases, however, a company can apply before ACRA for an extension of its holding of the AGM. According to the ACRA, these extensions generally do not exceed two months. After the approval of this request, a company is required to produce the Annual Return a month after the AGM.
Companies can apply for this extension a number of ways, depending on their type. These applications must be lodged before the due date of the original AGM, otherwise ACRA will not entertain any requests for extension.
Private limited and unlisted public companies have to lodge their application online via BizFile under “Extension of time under section 175 (1 to 2 months) for private limited & unlisted public companies.”
Publicly listed companies, on the other hand, must apply in writing to ACRA. Their application must discuss the reasons for the request, as well as pertinent supporting documents, as well as the application fee. In addition, these companies must seek comments from the SGX and include a copy of its reply to the application. BizFile application is not applicable for this company type.
Companies need to pay a S$50 non-refundable application fee for a one-month extension, or a non-refundable S$100 for a two-month extension.
Three entities can lodge the application for extension: a company officer, preferably a director or secretary; a professional firm hired by the company; or a service bureau hired by the company.
Eighty-five percent of applications are processed within five days, while the maximum period of processing is fourteen days.