Extension for a period of 3 months for holding of Annual General Meeting (AGM) for the financial year ended March 31, 2020.
As per Section 96 (1) of the Companies Act, 2013 every company other than a One Person Company shall in each year hold an Annual General Meeting, and a gap between the 2 such consecutive AGMs shall not exceed 15 months.
First proviso to Section 96 (1) of the Companies Act, 2013 states that in case of the first annual general meeting, it shall be held within a period of nine months from the date of closing of the first financial year of the company and in any other case, within a period of six months, from the date of closing of the financial year.
Second proviso to Section 96 (1) of the Companies Act, 2013 states that further that if a company holds its first annual general meeting as aforesaid, it shall not be necessary for the company to hold any annual general meeting in the year of its incorporation.
Third proviso to Section 96 (1) of the Companies Act, 2013 states that the 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.
In the backdrop of COVID-19, companies are encountering various challenges to hold their AGM for the financial year ended March 31, 2020. Under the power vested as per third proviso to Section 96 (1) of the Companies Act, 2013, the Registrar of Companies vide its order dated September 08, 2020, has provided an extension for a period of 3 months for conducting AGM i.e. last date to hold AGM for the current financial year is December 31, 2020. This extension has been provided to all the companies, without requiring the companies to file application for seeking such extension in the prescribed Form GNL-1.
The Order further clarifies that extension granted shall be applicable to the below mentioned companies as well:
- Which have filed application to the ROC in Form GNL-1 and same is pending for approval
- Who has filed application to the ROC in Form GNL-1 and same was rejected earlier
The extension has been provided by all the 25 ROCs. Link for viewing AGM extension Order issued by ROCs is hereunder: http://mca.gov.in/MinistryV2/extensionofagm.html
Author Bio
Thanks..very helpful.
MCA has lately realized backdrop of COVID-19. Those honest companies who have already filed GNL1 by paying ROC fees have turned out to be fool, by incurring unnecessary expenses of paying fees ! And that’s a reason companies file Forms as late as possible and await for such circulars.