Extension of Due Date for holding of Annual General Meeting
With the constant rise of COVID-19 cases in the country and the need to maintain social distancing and other necessary restrictions, multiple representations were made to the Ministry of Corporate Affairs (‘MCA’) and Registrar of Companies (‘ROC’) for extension of the due date for holding of Annual General Meeting (‘AGM’) for the financial year ended March 31, 2020.
Many companies were finding it difficult to make arrangements for holding of AGM within the stipulated due date of September 30, 2020. Considering the same all the ROCs have issued an order allowing a 3 months extension for holding of AGM for the financial year ended March 31, 2020.
As per the orders issued by respective ROCs the due date of holding of AGM for the financial year ended March 31, 2020 has now extended till December 31, 2020.
The orders further provides the following clarifications:
1. There is no extension of time period for holding the first AGM of a company;
2. Companies are not required to separately file Form GNL-1 for seeking extension of AGM;
3. The extension granted under the order shall also cover all the pending or rejected GNL-1 applications made to ROC, by companies, for extension of due date for holing AGM; and
4. The approval for extension of AGM upto 3 months from the due date of the AGM shall be deemed to have been granted by the ROC without any further action on part of a company.
This extension will benefit multiple active companies which were finding it difficult to arrange for and hold AGM by September 30, 2020 and will also ease the burden on ROCs which will have to cater to multiple separate applications filed by various companies for extension of AGM requests.