The Ministry of Corporate Affairs (MCA) has allowed companies whose Annual General Meetings (AGMs) are Extraordinary General Meetings (EGMs) are due in the Year 2023 or 2024, to conduct their AGMs through VC or OAVM on or before 30th September, 2024 in accordance with the requirements laid down in Para 3 and Para 4 of the General Circular No. 20/2020 dated 05.05.2020.
However, it was also clarified that General Circular shall not be construed as conferring any extension of statutory time for holding of AGMs by the companies under the Companies Act, 2013 and the companies which have not adhered to the relevant statutory timelines shall be liable to legal action under the appropriate provisions of the Act.
Further, in continuation to this Ministry’s General Circular No. 14/2020 dated 08.04.2020, General Circular No. 03/2022 dated 05.05.2022 and General Circular No. 11/ 2022 dated 28.12.2022 and after due examination, it has also been decided to allow companies to conduct their EGMs through Video Conference (VC) or Other Audio Visual Means (OAVM) or transact items through postal ballot in accordance with framework provided in the aforesaid Circulars up to 30th September, 2024.
All other requirements provided in the said Circulars shall remain unchanged, the General Circular No. 9/2023 dated 25/09/2023 stated.
Notably, this circular only allows Companies whose statutory meeting requirements are due within the statutory timelines prescribed in the years 2023-2024 to conduct the same in online mode using VC or Other Audio Visual Means facilities. This is not an extension of the statutory timeline to conduct the meetings, but just the mode of conduct is allowed to be online/virtual.
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