Owing to the outbreak of the COVID-19 pandemic, many companies had filed representations before the regulator seeking an extension of time to hold the Annual General Meeting (AGM) of companies for the Financial year ended 31 March 2020.
As per section 96 of the Companies Act, 2013 and the Rules made thereunder, a Company shall hold its AGM within 15 months from its preceding Annual General Meeting provided it is held within 6 months from the closing of the Financial Year.
While representing before the MCA, companies have cited that due to lockdown announced on account of COVID-19, completion of audit process on time and placing of accounts before the AGM will be a challenge, and requested the regulator to extend the time limit provided under section 96.
The matter has been examined by MCA, and vide General Circular No 28/ 2020 dated 17 August 2020, it has stated that the Ministry has already examined this matter and has allowed the Companies to conduct AGMs through Video Conferencing (VC) or other Audio Visual means (OAVM).
The Ministry then stated that despite availing the relaxation for holding the AGM through VC and OAVM, if companies are unable to conduct the AGM within 30 September 2020, those companies are advised to prefer applications for extension of AGM at a suitable point of time before the concerned Registrar of Companies under section 96 of the Act.
Such applications seeking an extension of time in holding of AGM for the financial year ended on 31.03.2020 shall be made in form No. GNL-1 with the concerned Registrar of Companies on or before 29.09.2020.
The General circular also advised, the Registrars of Companies to consider all such applications (filed in Form No. GNL-1) liberally in view of the hardships faced by the stakeholders and to grant an extension for the period as applied for (up to three months) in such applications.
Image download link:
