Coronavirus outbreak: Govt eases AGM deadline for certain section of cos
The relaxed deadline would be applicable only for companies whose financial year ended on December 2019, the corporate affairs ministry said on Tuesday, amid the coronavirus pandemic and nationwide lockdown.
Under the Companies Act, 2013, companies have to hold their Annual General Meetings (AGMs) within nine months from the end of their financial year.
The ministry said it has received several representations from stakeholders with regard to difficulty in holding AGMs for companies whose financial year ended on December 31, 2019, due to COVID-19 related social distancing norms and consequential restrictions.
"... if the companies whose financial year (other than first financial year) has ended on December 31, 2019, hold their AGM for such financial year within a period of nine months from the closure of the financial year (ie. by 30th September 2020), the same shall not be viewed as a violation," it said in a circular.
According to the ministry, a company can hold its AGM within six months from the closure of the financial year and not later 15 months from the date of last AGM. If it is the first AGM, then a company can conduct the same within nine months from the end of a fiscal.
Earlier this month, the ministry allowed companies to send notices for extraordinary general meetings through e-mails to shareholders.
This facility would also be applicable to companies planning to transact business only through postal ballot without convening a general meeting.
The ministry has already permitted corporates to hold extraordinary general meetings and board meetings through video conferences and to seek approval for proposals through an electronic voting facility.
These measures have been taken in the wake of the coronavirus pandemic. RAM MR