MCA Issue Further Clarification of Holding of AGM through Video Conference or Audio Visual Means

The Ministry of Corporate Affairs (MCA) has issued Further Clarification for Holding AGM through Video Conference or Audio Visual Means it provided to Companies holding Annual General Meetings (AGMs).

It has now been stated that corporations planning to hold AGMs in 2022 for financial years ending before/on March 31, 2022, through video conference on the dates specified, can do so by June 30, 2022.

This latest MCA clarification comes just a week after the MCA said that companies with AGMs scheduled for 2021 (FY 2020-21) can hold them via video conference until the end of June 2022. It also reaffirmed this week that until the end of June next year, corporations can convene their extraordinary general meetings (EGMs) by video conference and transact business via postal ballot.

In continuation of Ministry’s General Circular No. 20/2020 dated 05.05.2020, General Circular No. 02/2021 dated 13.01.2021 and General Circular No. 19/2021 dated 08.12.2021, it has also been decided to allow the companies who are proposing to organize AGMs in 2022 for the Financial Year ended/ending any time before/on 31.03.2022 through VC or OAVM as per the respective due dates by 30th June, 2022 in accordance with the requirements laid down in Para 3 and Para 4 of the General Circular No. 20/2020 dated 05.05.2020.

This Circular shall not be understood as giving any extension of time for companies to hold AGMs under the Firms Act, 2013 (the Act), and that companies that fail to adhere to the applicable dates may face legal action under the Act’s appropriate provisions.