COVID-19 Update – Extension for Holding AGM

The Ministry of Corporate Affairs has relaxed the provisions of the Companies Act, 2013 for holding annual general meetings  for the financial year ending on March 31, 2020, in light of the difficulties faced on account of COVID-19.

AGM Extension

Under the Companies Act, companies are required to conduct their annual general meeting (‘AGM’) for the financial year ending on March 31, 2020 (‘FY 2020’) by September 30, 2020. The AGM is required for, inter alia, approval of the audited financial statements and approval / ratification of appointment of auditors.

MCA has directed the registrars of companies (‘RoCs’) to issue orders for extension of this deadline by 3 months (to December 31, 2020), without the requirement of formal applications from individual companies. Consequently, 25 offices of RoCs across India have extended this deadline for companies in their respective jurisdictions. The extension is not applicable to the first AGM of a newly incorporated company as the Companies Act already provides such new companies a period of 9 months from the end of the financial year to hold the first AGM.

For instance, RoC Mumbai has passed an order dated September 8, 2020 extending this deadline by 3 months. The extension granted by RoC Mumbai will be available without any further action on the part of companies within its jurisdiction. The extension covers pending as well as rejected applications for such extension. Similar orders have been passed by the other RoCs which can be accessed here.

Way Forward

MCA has introduced various amendments from time to time to ease the compliances under the Companies Act due to COVID-19. Companies should consider the revised timelines while complying with these requirements.

Date: September 15, 2020