MCA has extended the time for Holding of AGM & EGM through VC or OAVM till 30th September, 2023

In furtherance of the earlier relaxations granted by MCA in respect of holding AGM / EGM through VC / OAVM, MCA has now permitted companies whose AGMs are due in the year 2023, to conduct their AGM / EGM or passing of Ordinary/ Special Resolution until September 30, 2023, through VC (Video Conferencing)/ OAVM (Other Audio Visual Means).

The MCA had initially provided this facility in April 2020 following the Covid-19 pandemic. The facility has since then been extended a number of times and was set to end on December 31, 2022.

Basic Provisions:

(a) Annual Genenal Meeting: Section 96 of the Companies Act, 2013 covers the provisions relating to the Annual General Meeting (i.e., AGM).

• Every company is required to hold a general meeting each year. One person company is not required to hold the AGM.
• In the case of the first AGM, it should be held within nine months from the end of the first financial year. However, in any other case, the AGM should be held within six months from the end of the financial year.

(b) Extraordinary General Meeting (EGM): An extraordinary general meeting (EGM) is a shareholder meeting called other than a company’s scheduled annual general meeting (AGM). An EGM is also called a special general meeting or emergency general meeting.

• The extraordinary general meeting is utilized to deal with urgent matters that come up between annual shareholders’ meetings.
• EGMs are often considered for emergency measures such as resolving an immediate legal matter or the removal of a key manager.

Note: It is clarified that this facility should not have considered as giving any extension of time for holding of AGMs by the companies. Any company that does not follow the relevant timelines for holding AGMs will be liable for penalties under the appropriate provisions of the Companies Act, 2013.

Mridul Agrawal, Audit Associate, SW India

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