Home Quick Bites (AGM) EXTENSION OF AGM FOR 2020-21

Quick Bites (AGM) EXTENSION OF AGM FOR 2020-21

by CS Divesh Goyal
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Short Summary:

In this series of editorial, the author shall discuss the Quick bites on ‘Extension of AGM for the f.y. 2020-21”.

After receiving copious questions from our professional colleagues through our WhatsApp groups “Google Form”, inside this editorial, we have ventured to clarify all those questions received till date relating to the ‘Extension of AGM’.

AGM EXTENSION ORDERS OF ALL ROCshttps://mca.gov.in/content/mca/global/en/data-and-reports/rd-roc-info/extension-agm.html

Quick Bites:

1. Whether the Companies are required to file any form with the ROC for the f.y. 2020-21 for the extension of the AGM?

As per the general relaxation given by the ROC’s under the MCA guidance for the f.y. 2020-21, there is no obligation to file any form with the ROC for the extension of the AGM.

2. How Many Months general extension of AGM has been given by the ROC/ MCA?

ROC/ MCA has given extension of 2 months from the due date of AGM for holding of Annual General Meeting.

3. If A Company has filed GNL-1 with ROC for extension of AGM and same has been rejected by Roc. What will be impact of Extension on such Company?

As per Circular/ notification of ROC/ MCA such companies can also enjoy extension of 2 months from the due date of AGM for holding of Annual General Meeting.

4. If A Company has filed GNL-1 with ROC for extension of AGM and same has been pending for approval by Roc. What will be impact of Extension on such Company? 

As per Circular/ notification of ROC/ MCA such companies can also enjoy extension of 2 months from the due date of AGM for holding of Annual General Meeting without any approval of such forms

5. If A Company has filed GNL-1 with ROC for extension of AGM and same has been approved with less than 2 month extension by Roc. What will be impact of Extension on such Company? 

As per Circular/ notification of ROC/ MCA such companies can also enjoy extension of 2 months from the due date of AGM for holding of Annual General Meeting without any impact of such order.

6. If A Company has filed GNL-1 with ROC for extension of AGM and same has been approved with extension of more than 2 months by Roc. What will be impact of Extension on such Company? 

As per Circular/ notification of ROC/ MCA such companies can enjoy extension of the period mention in its order, irrespective of the fact of general extension.

7. Whether the Companies are required to pass any Board/ Shareholder resolution for the extension of the AGM?

For the f.y. 2020-21, due to the general relaxation given by the ROC/ MCA, there is no obligation to pass any resolution for the extension of the AGM.

8. How one calculate the due date of the AGM?

As per section 96(1) and first proviso, the due date of holding of the AGM is earlier of the following:

·        15 month from the date of the last AGM; or

·        6 month from the end of the financial year

9. Whether all the Companies can hold their AGM for 2020-21 till November 30, 2021, due to the general exemption?

As per the exemption, ROC has given the extension for holding of the AGM by 2 months from the due date of the AGM.

The due date is required to be calculated as per question No. 8.

Therefore, it shall be wrong to say that the extension is given to all the Companies to hold their AGM till November 30, 2021.

10. Whether the financial statements of the Companies can be signed after September 30, 2021, due to the extension of the AGM?

As per Company Law, Companies are required to approve the financial statements in the AGM. If the Company holds the AGM on any date after September 30, 2021, then in such cases the Financial statements can also be signed on or after September 30, 2021.

11. What shall be the due date of filing of AOC-4 for the f.y 2020-21, if the date of AGM is November 30, 2021?

In this case, the due date for filing of AOC-4 shall be December 29, 2021.

12. What shall be the due date of filing of MGT-7 for f.y. 2020-21, if the date of AGM is November 30, 2021?

In this case, the due date for filing of MGT-7 shall be January 29, 2022.

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 a professional advice and is subject to change without notice. I assume no responsibility for the consequences of 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

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