With the introduction of the Insolvency and Bankruptcy Code and strict measures by the Reserve Bank of India (RBI) for taking stringent action against Non- Performing Asset (NPA) accounts, MSMEs have been facing two-fold pressure:
Ministry of Corporate Affairs (‘MCA’) vide its general circular no. 14/2020 dated April 8, 2020 has clarified that in case of holding of Extra-ordinary General Meetings (‘EGMs’) is considered as un-avoidable by any company, then the company can hold EGM for transacting the urgent business through Video Conference (‘VC’) or other audio visual means (‘OAVM’) and pass ordinary or special resolution, as the case may be.
