Clarification on Extension of Annual General Meeting (AGM) for the FY ended as at March 31, 2020

MCA has not given extension of annual general meeting (AGM) for the financial year ended as at March 31, 2020.

MCA has issued General Circular No. 28/2020 dated 17th August 2020 to clarify that time limit to hold annual general meeting has not been extended. It is also clarified that, The Companies can use relaxations in General Circular No. 20/2020, dated 05th May 2020, regarding holding of AGM through video conferencing (VC) or other audio visual means (OAVM).

The companies which are unable to hold their AGM for the financial year ended on 31st March 2020, need to file their application in Form No GNL-1 for seeking extension of time in holding of AGM for the financial year ended on 31st March 2020 with the concerned Registrar of Companies. Companies seeking extension shall file GNL-1 on or before 29th September 2020.

The Registrars of Companies are advised to consider all such applications (filed in Form No. GNL-1) liberally in view of the hardships faced by the stakeholders amid COVID-19 pandemic and to grant an extension for the period as applied for (up to three months) in such applications.

Requirement of holding an Annual General Meeting (AGM):

Every Company whether, public or private, limited by shares or guarantee, with or without share capital or unlimited company is required to hold an Annual General Meeting (AGM) every year. Even a Company that has no activity is required to conduct a annual general meeting (AGM).

First annual general meeting (AGM) of the Company: The first annual general meeting of the company must be held within within 9 months of the closure of first financial year.

Subsequent annual general meeting (AGM): All subsequent AGM’s shall be convened within 6 months of the closure of the financial year. However, the gap between two AGM’s should not exceed 15 months.

Requirement of holding an Annual General Meeting (AGM):

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