The Ministry of Corporate Affairs on 5th May 2022, has decided to allow the companies whose AGMs are due in the year 2022, to conduct their AGMs on or before 31st December, 2022 through Video Conference (VC) or Other Audio-Visual Means (OAVM) .
Section 96 of the Companies Act, 2013 covers the provisions relating to the Annual General Meeting (i.e., AGM).Every company is required to hold a general meeting each year. One person company is not required to hold the AGM.In the case of the first AGM, it should be held within nine months from the end of the first financial year. However, in any other case, the AGM should be held within six months from the end of the financial year.
The MCA further clarified that this circular should not be construed as conferring any extension of time for holding annual general meetings by the companies under the Companies Act, 2013 and the companies which have not adhered to the relevant timelines shall be liable to legal action under the appropriate provisions of the Companies Act.
