The MCA has extended due date for holding Annual General Meeting for companies whose financial year ended on 31st December 2019. The said relaxation is notified vide General Circular No. 18/2020 dated 21st April 2020.
- As per the provisions of Section 96 of the Companies Act, 2013, every company shall hold its first Annual General Meeting within a period of 9 months from the closure of first financial year and thereafter within 6 months from the closure of the financial year and not more than 15 months shall elapse between two AGM.
- As per Section 2 (41) of the Companies Act, 2013, every company is required to follow Financial Year commencing from 01 April to 31 March of the following year. In case of companies or body corporate, which is a holding company or a subsidiary or associate company of a company incorporated outside India and is required to follow a different financial year for consolidation of its accounts outside India, may make an application to Central Government and upon approval can follow such different financial year.
The due date for holding Annual General Meeting for companies following Financial Year as 01st January to 31st December is 30th June 2020.
Considering the difficulties on account of social distancing and other restrictions imposed amid COVID-19, the MCA has clarified that the companies whose financial year (other that first financial year) has ended on 31st December 2019, such companies can hold their Annual General Meeting within a period of 9 months (instead of 6 months from the closure of financial year) from the closure of the financial year i.e. on or before 30th September 2020.
The said extended time allowed shall not be viewed as a violation of the provisions of the Companies Act, 2013 related to holding Annual General Meeting. Other matters such as due date of AGM or the date by which AGM should have been held under the Act, should be interpreted according.
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