Home Company Law - Editorial Extension of Holding of AGM through Video Conferencing

Extension of Holding of AGM through Video Conferencing

by CS Divesh Goyal
Published: Last Updated on 0 comment 1134 views

Summary:

MCA has issued circular on Clarification on Holding of AGM through VCvide No. 02/2021 dated January 13, 2020 in respect of Annual General Meeting. Many queries received from professionals in whatsapp group “Gyan Gurukul” in respect of  this circular like followings:

  1. “Whether AGM can be held even after December 31, 2020?”
  2. “Whether this circular is only for the f.y. 2019-20 or 2020-21?”

As per Para 1 of Circular:

Companies whose Annual General Meetings were due in Calendar Year 2020 and whose AGM shall be due in Calendar Year 2021 can hold their Annual General Meeting through Video Conferencing or other audio-Visual means.

As per Para 2 of Circular:

MCA has clarified in para 2 that this circular is nowhere granting any extension for holding of Annual General Meeting after due date.

Ques 1

Whether AGM can be held even after December 31, 2020?

As per para 2, date of holding of AGM is not extended. If Companies fails to hold AGM till due date, they are liable for legal action under Companies Act, 2013.

Ques 2

Whether this circular is only for the f.y. 2019-20 or 2020-21?

As per para 1, whatever AGM of Companies falling in calendar year 2020 and 2021. They can hold such AGM through Video Conferencing.

Ques 3

Which Companies are falling under this Circular?

All the Companies incorporated under Companies Act, 2013 can take benefit of this circular and hold their AGM through Video Conferencing till December 31, 2021.

Note:

One can opine that, It is not extension in due date of Holding of AGM. It is extension of mode of holding of AGM pursuant to MCA circulate Dated 05.05.2020 (which states about, holding of AGM through Video Conferencing).

Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com).

Disclaimer: The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, I assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not professional advice and is subject to change without notice. I assume no responsibility for the consequences of the use of such information.

IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION

  [1] http://www.mca.gov.in/MinistryV2/extensionofagm.html

You may also like

Leave a Comment