Are you still contemplative on how to conduct your company’s AGM this year amid the COVID-19 crisis? Are you puzzled about the schemes and benefits which the Ministry has issued for the corporate?
We at SAS Partners Corporate Advisors are here to guide you through all the relaxations which the Government has granted and help your company to sail through in these difficult times.
In view of COVID-19 outbreak, the Ministry of Corporate Affairs had on May 05, 2020 issued a circular, providing relaxation to companies to hold the Annual General Meeting for the year 2019-20 through Video Conferencing / Other Audio Video Mode. The Circular specified that apart from the ordinary business, only unavoidable special business items can be transacted at the AGM through VC/OAVM.
Further, considering the travel restrictions and threat posed by the outbreak, the Ministry had received several representations for providing further relaxation to companies for holding AGM beyond statutory period provided in the Act. The Ministry on August 17, 2020 issued a clarification circular on extension of AGM for the year 2019-20.
As per the existing provisions of Companies Act, 2013, a company, for any special reason, can seek extension of time for conducting AGM from their respective Registrar of Companies. The extension period shall not exceed three months.
Pursuant to the circular issued on August 17, 2020, the Ministry states that, the Companies which are unable to hold AGM even through VC/OAVM, are advised to prefer application for extension of AGM as per provisions of the Act. They have further advised the Registrar of Companies to consider the applications liberally in view of the hardship faced by the companies.
It is time for you to plan the Annual General Meeting 2020 for your companies. If you wish to seek extension, please reach out to us at firstname.lastname@example.org.