Holding of Annual General Meeting Amid COVID-19 Pandemic : A Critique to MCA Circular

Holding of Annual General Meeting Amid COVID-19 Pandemic : A Critique to MCA Circular

Introduction

Holding of Annual General Meeting (AGM) is a statutory obligation on every company. Pursuant to the provisions of Section 96 of the Companies Act, 2013 (hereinafter referred to as ‘2013 Act’) every company shall hold its AGM other than the first AGM within a period of 6 months from the closure of its date of the financial year. On the other hand, in the case of the first AGM the same must be conducted by the Company within a period of 9 months from the closure of the financial year. Also, the gap between two AGMs shall not be more than 15 months. Recently, the Ministry of Corporate Affairs (MCA) vide circular dated 21st April 2020 has extended the due date of AGM by 3 months for the Companies who are having their financial year closure date as 31st December, 2019. Such extension was provided with a view that COVID situation through which the nation is going through will not be able to control by 30th June 2020 which was the actual due date of AGM for such companies and therefore to avoid unnecessary application for extension of AGM the relief has been provided to all such companies at once.

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