Corporations can be given three months’ extension to carry their AGMs
The Ministry of Company Affairs (MCA) has directed Registrar of Corporations (RoC) to accord approval of three months extension to corporations who haven’t capable of maintain their annual basic conferences (AGMs) for the monetary yr ended March 31. “It has been determined that RoC needs to be directed to accord approval for extension of time for a interval of three months past the due date by which corporations are required to conduct their AGMs for the monetary yr 2019-2020 ending on March 31, 2020,” mentioned the MCA in a press release.
Earlier final month, MCA has issued a clarification to its order that no basic extension for the due date of holding AGM for monetary yr 2019-20 has been given. However such corporations can file an software with their RoC on or earlier than September 29 in a specified kind (GNL-1) for searching for extension of time in holding of AGM for the monetary yr ended March 31.
These functions can be considered by RoC and extensions can be granted for a most of three months, the round mentioned. Indian corporations are required to carry AGMs with six months of closure of the monetary yr which suggests earlier than September 30 for many who having March 31 as year-end.
Although the MCA had allowed corporations to carry digital AGMs utilizing audio-video functions, the prevailing pandemic disaster had made it a logistical nightmare for corporations to finish the audit features and finalise the annual stories.
