Ever since the extension in filing dates has been announced by the Income Tax Department, rumors with regard to extension in holding the AGM’s have manifolded.
The basis of such rumors rests upon:
♥ The extension granted by the Income Tax Department in filing the Returns.
♥ Wrong interpretation of Circular No. 2/2021 issued on 13.01.2021 by the Ministry of Corporate Affairs with regard to the extension of AGM for FY 2020-2021 till 31.12.2021
ANALYSIS
An extension in filing dates announced by the IT Department should not be construed and deemed as an extension in holding the AGM for the Corporates. This is so because the Income Tax Department and the Ministry of Corporate Affairs are two different and independent Regulatory Authorities, who look after the Income Tax and Corporate Affairs respectively.
Further, the concept of holding General Meetings through Video Conferencing Mode is not inherent in Law. It was due to the outbreak of COVID-19 that the Government last year, had introduced this concept seeking it as a measure of compliance in those difficult times.
Vide Circular No. 02/2021 as aforementioned, the Ministry has allowed the Corporates to hold the AGMs via Video Conferencing Mode for the FY 2020-21 up to 31.12.2021. This implies that Companies who hold their AGMs beyond the Statutory time limit of 180 days by seeking an extension of time from the respective ROC’s can conduct their AGM’s through VC mode.
Therefore, at present, there is no extension of time in holding the AGM and the due date of AGM stands the same i.e. 180 days from the date of closure of the Financial year viz. September 30, 2021.
Update on 23.09.2021 at 7.00 PM: MCA extends timeline for extension of AGM for financial ending on 31.03.2021 vide Office Memorandum No. CL-II-03/252/2021-0/o DGCoA-MCA Dated: 23.09.2021 till 30th November 2021. Read:Extension For Conducting AGM till 30 November 2021
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