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:
- “Whether AGM can be held even after December 31, 2020?”
- “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.
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.
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.
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.
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 firstname.lastname@example.org).
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