Extension of the Annual General Meeting (AGM) for the year ended 31st March 2020
Extension of the Annual General Meeting (AGM) for the year ended 31st
Due to the pandemic of COVID-19 and social distancing norms and consequential regulations connected thereto, MCA has got numerous representations to permit companies to hold their Annual General Meeting for the year ended on 31st March 2020 beyond the statutory period mentioned in Section Ninety-Six of the Companies Act, 2013 and issue a circular regarding AGM 2020 extension.
The matter was observed and MCA clarified vide General Circular No. 20/2020, dated 05.05.2020 concern maintaining of AGM via videoconferencing (VC) or different audiovisual means (OAVM), the corporates which had been not able to hold their AGM had been recommended to opt for an extension of AGM at an appropriate time before Registrar of Companies under Section Ninety-six of the Company Act.
Again, MCA vide General Circular no. 28/2020 dated 17th August,2020 has issued an explanation on an extension of Annual General Meeting for the year ended as at 31.03.2020.
-Provisions of maintaining Annual general meeting (AGM) as per Companies Act, 2013.
-According to Section Ninety-six of the Companies Act, 2013, Corporates are to carry their Annual General Meeting (AGM) within 6months from the date of closing of the financial year and Corporates which can carry their first AGM will be held within nine months from the date of closing of the financial year.
The Ministry again reiterated that the corporate which can be not able to carry their AGM for the year ended on March 31, 2020, despite availing the relaxations mentioned in MCA General Circular No. 20/2020 ought to file E-Form GNL-1 for seeking an extension of time in carrying of AGM for the year ended on March 31, 2020, with Registrar of Companies on or earlier than 29th September 2020.
Also, the Ministry has directed Registrars of Companies to do not forget all such forms (Filed in E-Form GNL-1) liberally because of the hardships confronted with stakeholders and to provide an extension as applied for (up to a few months i.e. 31st December).
Procedure to submit an application seeking extension of time for holding Annual General Meeting:
1. Chairman /Director of the company shall issue a notice for a Board meeting in 7 days before the date of Meeting of Board.
2. To Convene a Board Meeting on the required date.
3. To decide for extension of time for AGM specifying the due motive for extension of AGM.
4. Inform to Registrar of Companies in E-Form No. GNL-1.(Reason for not carrying AGM along with different essential records to be provided).
5. Attach the Certified actual copy of the Board Resolution in E-Form-GNL-1.
Obtain the Certificate of Grant of extension in carrying the Annual General Meeting of the Company.
Convening of Annual General Meeting within an extension.
Once the extension is being granted, the company might also convene the annual general meeting of the Company within the time as allowed ROC.