Companies to apply to ROC for extension of Due date of AGM

HEMANT GUPTA 20 Aug 2020 4,395 Views 2 comments Print Company Law | Articles

Pursuant to the provisions of Section 96 of the Companies Act, 2013, every company other than OPC is required to hold its Annual General Meeting (AGM) as follows:-

♠ In case of first AGM, within a period of 9 Months from the date of closing of the financial year.

♠ In any other case, within a period of 6 months from the date of closing of the financial year, therefore, for the F.Y. 2019-20 it is 30.09.2020.

However, as per third proviso to Section 96(1), Registrar may, for any special reason, extend the time within which any annual general meeting, other than the first annual general meeting, shall be held, by a period not exceeding three months.

Further, CBDT vide its notification dated 24.06.2020, extended the date of submitting Income Tax Returns till 30.11.2020 & furnishing of report of audit for the F.Y. 2019-20, extended to the 31.10.2020.

Further, the companies are required to present and consider Financial Statements including Consolidated Financial Statements along with report of Board and Auditors thereon in the AGM.

Therefore, there is a difficulty to comply with section 96 to present the same in the AGM, as there is extension in Income Tax Act but there is no extension in AGM due date i.e. 30.09.2020.

MCA in this respect on 17.08.2020 had clarified that if the companies are unable to hold their AGM for the financial year ended on 31.03.2020, they may file their applications in form No. GNL-1 for seeking extension of time in holding of AGM for the financial year ended on 31.03.2020 with the concerned Registrar of Companies on or before 29.09.2020.

Further, MCA also advised to consider all such applications (filed in Form No. GNL-1) liberally in view of the hardships faced by the stakeholders and to grant extension for the period as applied for (upto three months) in such applications.

Source-