MCA has issued General Circular No 2/2022 and 3/2022 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 till 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 the last two circulars (as mentioned above) MCA has allowed Companies to hold their AGM/ EGM through VC till 30th June 2022.
RECENT CIRCULAR:
In the recent [1]Circular No 2-3 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.
EFFECT:
According to these circulars, any type Company wants to hold their General Meeting through Video Conferencing;
√ EGM can be held through VC till 31st December 2022 for passing of any type of Ordinary and Special Resolution
√ AGM can be held through VC for the FY ended 31 March 2022 or any previous financial years till 31st December 2022 for conducting of any Special or ordinary business.
QUESTIONS:
1) If Company holds their AGM through Video Conferencing, can they hold their AGM for FY ended 31.03.2022 upto 31st December 2022?
MCA has extended the time for mode of holding of AGM. Due date of AGM has not been extended. AGM should hold till 30th September 2022.
2) In which situations company can hold their AGM through Video Conferencing for FY 31.03.2022 after 30 September till 31st December?
Company having opportunity to hold their AGM through VC till 31st December 2022. However, in below mentioned situation company can hold AGM after 30th September:
i. If Company has taken extension for holding of AGM from Registrar of Companies.
ii. If Company unable to hold AGM till 30th September and hold after 30th September (this shall be considered as noncompliance under Law and company required compounding for the same).
Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at [email protected]).
[1]https://taxguru.in/company-law/agm-through-vc-or-oavm-up-to-31st-december-2022.html
https://taxguru.in/company-law/egm-vc-oavm-31st-december-2022.html