The Ministry of Corporate Affairs (MCA) has directed Registrar of Companies (RoC) to accord approval of three months extension to companies who have not able to hold their annual general meetings (AGMs) for the financial year ended March 31. "It has been decided that RoC should be directed to accord approval for extension of time for a period of three months beyond the due date by which companies are required to conduct their AGMs for the financial year 2019-2020 ending on March 31, 2020," said the MCA in a statement.
Earlier last month, MCA has issued a clarification to its order that no general extension for the due date of holding AGM for financial year 2019-20 has been given. But such companies can file an application with their RoC on or before September 29 in a specified form (GNL-1) for seeking extension of time in holding of AGM for the financial year ended March 31.
These applications will be viewed by RoC and extensions will be granted for a maximum of three months, the circular said. Indian companies are required to hold AGMs with six months of closure of the financial year which means before September 30 for those who having March 31 as year-end.
Though the MCA had allowed companies to hold virtual AGMs using audio-video applications, the prevailing pandemic crisis had made it a logistical nightmare for companies to complete the audit functions and finalise the annual reports.