Under the Companies Act, 2013, companies have to hold their Annual General Meetings (AGMs) within nine months from the end of their financial year.
Providing a relaxation in compliance requirements, the government has given time till September-end for a certain section of companies to conduct their annual general meetings.
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.
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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.
Source: Business Standard
