AGM EXTENSION 2020 – MCA CLARIFICATION FOR THE FY 31.03.2020

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AGM EXTENSION 2020 – MCA Clarification for the FY 31.03.2020

MCA vide General Circular no. 28/ 2020 dated 17th August 2020 has issued Clarification on Extension of Annual General Meeting (AGM) for the financial year ended as at 31.03.2020- Companies Act, 2013.

Key Highlights:

1.  MCA has received several representations to allow companies to hold their annual general meeting (AGM) for the financial year ended on 31st March, 2020 beyond the statutory period provided in section 96 of the Companies Act 2013.

•          Provisions of Section 96 of Companies Act, 2013 – AGM Related

In case of first AGM of the Company: In case of Subsequent AGM of the Company
  • not necessary to hold AGM in the year of its incorporation
  • AGM shall be held within a period of 9 months from the date of closing of the first financial year of the company
  • AGM is an Annual Exercise
  • within a period of 6 months, from the date of closing of the financial year

2. Ministry key aspects:

  1. Ministry has already provided digital AGM platform to all the Companies. Ministry vide General Circular No. 20/2020 has clarified that Companies can hold AGM for the calendar year 2020 M through video conferencing (VC) or other audio visual means (OAVM).
  2. Company can voluntary apply for AGM extension.

3. Solution / suggestions given by MCA:

Companies can voluntary file application for Extension of AGM with the concerned Registrar of Companies (despite availing the relaxations provided in the General Circular 20/2020)

4. MCA E-Form and due date to apply for extension:

  • Form no. – GNL-1
  • Last date to apply for extension : 29.09.2020

Author views:

It is a good decision by MCA, as the companies are already having the option under the Company Law to apply for AGM extension under Section 96. Company can make an application with the concerned ROC for extension of AGM for a maximum period of 3 months.

• Grace Period (Extension) under section 96:

Registrar may, for any special reason, extend the time by a period not exceeding 3 months (additional) – {other than First AGM of the Company.}

Link: http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.28_17082020.pdf

By CS LALIT RAJPUT

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION. THIS HAS BEEN SHARED FOR KNOWLEDGE PURPOSES ONLY.

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