Extension of time for Holding of AGM & EGM through VC

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 30^th 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 31^st 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 31^st 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 31^st 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 31^st 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 30^th September 2022.

2) In which situations company can hold their AGM through Video Conferencing for FY 31.03.2022 after 30 September till 31^st December?

Company having opportunity to hold their AGM through VC till 31^st December 2022. However, in below mentioned situation company can hold AGM after 30^th September:

i. If Company has taken extension for holding of AGM from Registrar of Companies.

ii. If Company unable to hold AGM till 30^th September and hold after 30^th 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 csdiveshgoyal@gmail.com).

[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