MCA has issued General Circular No 10/2022 and General Circular No 11/2022 dated 28.12.2022 in respect of clarification of holding of AGM & EGM through Video Conferencing (VC).
MCA has first time issued circular vide No. 14/2020 on 08.04.2020 in respect of holding of EGM through Video Conferencing and Circular No. 20/2020 dated 05.05.2020 in respect of holding of AGM through Video Conferencing.
After that so many circulars have been issued by MCA like Circular No. 20–21/2021 dated 8.12.2021 and 14.12.2021 in respect of extension of time of Holding of AGM and EGM through VC.
In General Circular No 2/2022 and 03/2022 dated 05.05.2022 MCA has extended Time period for holding of AGM / EGM or passing of Ordinary/ Special Resolution through Video Conferencing till 31st December 2022
RECENT CIRCULAR:
In the recent General Circular No 10/2022 dated 28.12.2022 & General Circular No 11/2022 dated 28.12.2022 MCA has extended Time period for holding of AGM / EGM or passing of Ordinary/ Special Resolution through Video Conferencing till 30th September 2023.
EFFECT:
According to these circulars, any type Company wants to hold their General Meeting through Video Conferencing;
- EGM can be held through VC till 30th September 2023 for passing of any type of Ordinary and Special Resolution
- AGM can be held through VC for the FY ended 31 March 2023 or any previous financial years till 30th September 2023 for conducting of any Special or ordinary business.
QUESTIONS:
- If Company holds their AGM through Video Conferencing, can they hold their AGM for FY ended 31.03.2022 upto 30th September 2023?
MCA has extended the time for mode of holding of AGM. Due date of AGM has not been extended. AGM must held till 30th September 2022.
- In which situations company can hold their AGM through Video Conferencing for FY 31.03.2022 after 31st December?
Company having opportunity to hold their AGM through VC till 30th September 2023. However, there is no situation when company can hold AGM after 31st December 2022 except one. When Company hold after Due date and after holding AGM apply for compounding with RD u/s 460.
CONCLUSION:
Note that, this extension only allowing Company to hold General Meeting in any mode. Whether through Physical or Video Conferencing mode till 30th September 2023.
It is specifically mention that, this circular should not considered any type of Extension of Holding of AGM of any year.
Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at [email protected]).
Author Bio
In my opinion, circular dated 28.12.2022 is applicable only for AGM to be held in 2023 and not on EGM.