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Companies get 2-month extension to hold AGMs

By Ruchika Chitravanshi
September 24, 2021 16:52 IST
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The ministry of corporate affairs (MCA) has allowed a two-month extension to the deadline for companies to hold their annual general meeting for the financial year ending March 31, 2021.


Illustration: Dominic Xavier/

The government said it had received many representations seeking extension of time citing many difficulties due to the second wave of Covid-19 and the subsequent lockdowns.

MCA has asked the registrar of companies to approve the extension of the time limit to hold the AGM.


According to the Com­panies Act, not more than 15 months should elapse bet­ween the date of one AGM and the next.

“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,” Sec­tion 96 of the Com­panies Act says.

Experts said the MCA’s decision to extend the reporting timelines for holding AGMs due to the Covid-19 related disruptions during 2020-21 is a welcome relief for corporate India.

“This is especially helpful for SMEs and our start-ups since they have been facing several difficulties, including business disruptions, changes in operating mod­els, work from home and availability of people,” said Khazat Kotwal, part­ner, Deloitte India.

Earlier in June, MCA had allowed board meetings through video conferencing for activities that were earlier restricted for the digital med­ium, in a move to ease the burden on companies to hold physical meetings even beyond the pandemic.

Companies were not allow­ed to hold the audit committee meetings for consideration of accounts through video conferencing earlier.

Approval of matters relating to amalgamation, merger, demerger, acquisition and takeover also required physical meeting.

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Ruchika Chitravanshi in New Delhi
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