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Caught in a pandemic, India Inc gets another three months to hold AGMs

Companies will get time till December to hold their annual general meetings, a corporate affairs ministry official said.
Registrars of Companies in Maharashtra, Punjab, Delhi, Kerala, Rajasthan, Karnataka, Uttar Pradesh and Gujarat have extended the September-end deadline by an additional three months, the official said, adding that all other registrars will follow suit.
“Most RoCs would be providing an extension at their level,” the official told ET.
The move follows representations from companies, industry groups and professional institutes highlighting the difficulties faced in holding AGMs due Covid-19.
As per the Companies Act, companies are required to hold AGMs within six months of the closing of a financial year.
“This relaxation has been granted as a part of Covid-19 relief because the audit of the companies could not be completed in due time,” said Amit Maheshwari, a partner at consulting firm AKM Global.
RoCs received thousands of applications for extension of the AGM deadline through the GNL-1 form, he added.
The extension will cover all companies that have GNL-1 applications pending with the RoC and companies whose GNL-1 applications for FY20 were rejected.
In April, the ministry allowed companies to conduct AGMs and extraordinary general meetings through videoconferencing or other audio-visual means in light of travel restrictions and other difficulties arising from the Covid-19 outbreak and lockdown.
Before that, the ministry allowed board meetings to be held through these modes for similar reasons.
Please clcik here to read the story published in the Economic Times.