“On account of need for continuous adherence to the social distancing norms and restrictions placed on movement of persons, it has become necessary and hence it has been decided to allow companies to hold their annual general meeting (AGM) by Video Conferencing (VC) or other audio visual means (OAVM) during the calendar year 2020,” the ministry stated in an official launch.
The MCA had final month allowed the companies whose monetary 12 months ended on 31st December, 2019, to hold their AGM by 30th September, 2020.
The framework supplied within the earlier Circulars for holding of extraordinary normal assembly (EGM) could be relevant mutatis mutandis for conduct of AGMs throughout 2020, based mostly on the classification of companies that are required to:
(i) present the ability of e-voting or have opted for a similar, and
(ii) these companies which aren’t required to present such a facility.
Owing to the difficulties in sending bodily copies of the monetary statements, the Circular allows the companies to ship the monetary statements, together with Board’s reviews, Auditor’s reviews and different paperwork required to be connected therewith, solely through electronic mail.
The companies are additionally required to present a window to the shareholders for registering their mandate for transferring dividends electronically to them through the Electronic Clearing Service (ECS) or every other means.
Companies are required to hold their AGMs inside six months from the top of a monetary 12 months whereas these companies who’re conducting their first AGM, have 9 months’ time from the top of a monetary 12 months.