Clarification on Extension of Annual General Meeting (AGM) for the financial year ended as at 31.03.2020
As per section 96(1) of Companies Act, 2013, an Annual General Meeting (AGM) of a company has to be held within a period of six months from the date of closing of the financial year.
In view of the above, Ministry of Corporate Affairs (MCA) in its previous circular dated 21/4/2020, has allowed companies whose financial year ends on 31st December, 2019 to hold their AGM by 30th September, 2020 considering the hardship which the companies are facing due to COVID-19.
Again, MCA in its another circular dated 5th May, 2020 allowed the companies to conduct their AGMs through video conferencing or other audio visual means during the calendar year 2020.
However, MCA observed that inspite of the relaxations provided to the companies in view of the above circular dated 5th May, 2020, the companies are still facing hardship in holding their AGMs for the financial year ended on 31/3/2020. Therefore, it advised the Registrar of Companies (ROC) to consider the application of companies who approach them and grant extension for a further period of three months as per the third proviso to section 96(1) of the Companies Act, 2013.
In other words, it means that companies, whose financial year ends on 31st March, 2020 can hold their AGMs up to 31st December, 2020, if the ROC extends it for three months.
