The MCA vide General Circular No. 18/2020 dated April 21, 2020, has clarified that the time limit for holding of Annual General Meeting by the Companies whose financial year has ended on December 31, 2019. Several representations have been received from stakeholders with regard to difficulty in holding annual general meetings (AGMs) for companies whose financial year ended on 31st December 2019 due to COVID-19 related social distancing norms and consequential restrictions linked thereto. These representations have been examined and it is noted that the Companies Act, 2013 (Act) allows a company to hold its AGM within a period of six months (nine months in case of first AGM) from the closure of the financial year and not later than a period of 15 months from the date of last AGM.
On account of the difficulties highlighted above, it is hereby clarified that if the companies whose financial year (other than first financial year) has ended on 31st, December 2019, hold their AGM for such financial year within a period of nine months from the closure of the financial year (i.e. by 30th September 2020), the same shall not be viewed as a violation. The references to the due date of AGM or the date by which the AGM should have been held under the Act or the rules made thereunder shall be construed accordingly.
The Complete Circular can be accessed at: http://www.mca.gov.in/Ministry/pdf/Circular18_21042020.pdf