The Ministry of Corporate Affairs ( MCA ), on Tuesday, issued a clarification on holding of Annual General Meeting ( AGM ) through video conferencing or any other audio-visual means.
Noting the difficulties involved in physical meetings due to Covid-19 and the lockdown, the MCA released a circular addressing all the Regional Directors, Registrar of Companies, and Stakeholders so as to clarify norms for holding of AGM through video conferencing.
The Ministry issued the clarifications in furtherance of the several representations received for providing relaxations in the provisions of Companies Act, 2013 or rules made to allow companies to hold Annual General Meetings (AGM) in a manner similar to the one provided in General Circular which deals with the conduct of Extraordinary General Meetings (EGM).
“In view of the prevailing situation, owing to the difficulties involved in dispatching of physical copies of the financial statements (including Board’s report, Auditor’s report or other documents required to be attached therewith), such statements shall be sent only by email to the members, trustees for the debenture-holder of any debentures issued by the company, and to all other persons so entitled,” the circular clarified in the case, where companies which are required to provide the facility of e-voting under the Act, or any other company which has opted for such facility.
The circular while addressing those companies which are not required to provide the facility of e-voting under the Act stated, “AGM may be conducted through the facility of VC or OAVM only by a company which has in its records, the email addresses of at least half of its total number of members.”
“The company shall take all necessary steps to register the email addresses of all persons who have not registered their email addresses with the company,” the circular further clarified.
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