The Ministry of Corporate Affairs (MCA) allowed companies whose financial year ended in December, to hold their first Annual General Meeting (AGMs) within the first nine months of their current fiscal or September 30, without it being viewed as a violation under the Companies Act.
The relaxation was given on account of many such companies requesting leniency on the AGM rules owing to the social distancing norms and the lockdown resulting from the Covid-19 outbreak, the ministry said in a circular released on Monday.
“On account of the difficulties highlighted above, it is hereby clarified that if the companies whose financial year (other than first financial year) has ended on 31st December, 2019, hold their AGM for such financial year within a period of nine months from the closure of the financial year (i.e. by 30th September, 2020), the same shall not be viewed as a violation,” the circular said.
As per the Companies Act, 2013, companies must hold an AGM within six months from the closure of the previous financial year and not beyond 15 month of the last AGM.
Earlier this month, the MCA allowed companies to hold AGMs and extra general meetings (EGMs) through video conference or other audio visual means given the impact of Covid-19 on travel and difficulties in holding physical meetings.
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Source: indiatimes.com
