Companies should hold their AGMs within six months’ time, from the end of a financial year.
New Delhi. The Ministry of Corporate Affairs or MCA has allowed all companies to hold their Annual General Meetings or AGM by Video Conferencing r by VC, on Tuesday, May 5th, 2020. They can also adopt other audio-visual means or OAVMs to conduct the meeting, during the calendar year 2020, amidst the Corona virus outbreak crisis.
“On account of need for continuous adherence to the social distancing norms and restrictions placed on movement of persons, it has become necessary and hence it has been decided to allow companies to hold their annual general meeting (AGM) by Video Conferencing (VC) or other audio visual means (OAVM) during the calendar year 2020,” the Ministry said in an official release.
The Ministry of Corporate Affairs or the MCA had allowed the companies, whose financial year ended on 31st December 2019, to hold their Annual General Body Meeting by 30th September 2020. This permission was given by the MCA last month only.
The framework that was provided in the earlier circulars for holding extraordinary general meeting or EGM, would be applicable mutatis mutandis for conduct of AGMs during the year 2020.
Based on the classification of companies, which are required to:
- Provide the facility of e voting or have opted for the same, and
- Those companies which are not required to provide such a facility.
This circular allows the companies to send their financial statements, along with Board’s reports, Auditor’s reports and other documents required to be attached therewith, only through e mail. This arrangement has been made because of the difficulties in sending physical copies of the financial statements.
The companies are required to provide a window to the shareholders for registering their mandate for transferring dividends electronically to them through the Electronic Clearing Service or ECS or by any other digital means.
Companies are required to hold their AGMs within six months from the end of a financial year while those companies who are conducting their first AGM, have nine months’ time from the end of a financial year.