In this editorial, the author is going to discuss a very common question between the professionals and the Corporates in respect of the Due Date of the AGM and the selection of the Extension of AGM in the e-form MGT-7 for the f.y. 2019-20.
We have undergone a lot of queries from the professionals in our WhatsApp group “Gyan Gurukul”.
The main question which arises is Whether to select YES or NO under the Clause (viii) which ask whether any extension for AGM granted.
- Provisions of Law:
Language of the e-form MGT-7
As per Clause (viii), the Company have to mention four details:
- a) Whether the AGM held
- b) Date of the AGM
- c) Due Date of the AGM
- d) Whether Extension Granted
- How to Fill the form?
- a) If the AGM held, mention yes at point No. 1
- b) Mention the actual date on which the AGM held.
- c) Mention the actual Due date of the AGM i.e. (15 months from the last AGM or 6 months from the end of the financial year, whichever is earlier)
- d) If the Extension granted, mentiIf the extension not granted, then mention NO.
As the form MGT-7 simply ask for “Whether any extension for the AGM granted”.
⦁ No-where it is mentioned that
⦁ Whether the extension granted by the ROC itself; or
⦁ The AGM extended by the ROC on the application of the Company.
Therefore, one can opine that ‘ the Company have to select YES if the extension is granted to the Company by any of the above-mentioned ways.
For the f.y. 2019-20, ROC’s have given the extension by three months to all the Companies to hold their AGM. Therefore, for the f.y. 2019-20, the Company can hold the AGM after the due date but within the extended period. In that case, the Companies have to select ‘YES’ instead of ‘No’.
Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at email@example.com).
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