MCA Circular on holding the Annual General Meeting by Companies whose F.Y has ended on 31st December 2019
MCA Circular on holding the Annual General Meeting by Companies whose
F.Y has ended on 31st December 2019.
Every company other than a One Person Company shall in each year hold in addition to any other meetings, a general meeting as its annual general meeting (AGM) and shall specify the meeting as such in the notices calling it, and not more than fifteen months shall elapse between the date of one annual general meeting of a company and that of the next:
Provided that in case of the first annual general meeting, it shall be held within a period of nine months from the date of closing of the first financial year of the company and in any other case, within a period of six months, from the date of closing of the financial year.
Crux of the matter is
Therefore, 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.
As per the
provisions of Section 96 of Companies Act, 2013
Every company other than a One Person Company shall in each year hold in addition to any other meetings, a general meeting as its annual general meeting (AGM) and shall specify the meeting as such in the notices calling it, and not more than fifteen months shall elapse between the date of one annual general meeting of a company and that of the next:
Provided that in case of the first annual general meeting, it shall be held within a period of nine months from the date of closing of the first financial year of the company and in any other case, within a period of six months, from the date of closing of the financial year.
Crux of the matter is
Every company other
than a One Person Company has to hold its 1st AGM within a period of nine
months from the date of closing of the first financial year of the company
and in any other case, within a period of six months, from the date of
closing of the financial year.
Therefore, 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.
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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