{"id":7240,"date":"2020-04-23T17:51:10","date_gmt":"2020-04-23T12:21:10","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=7240"},"modified":"2022-09-10T14:43:44","modified_gmt":"2022-09-10T09:13:44","slug":"covid-19-mca-relieved-date-of-holding-agm-for-the-companies","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/covid-19-mca-relieved-date-of-holding-agm-for-the-companies\/","title":{"rendered":"COVID-19: MCA Relieved Date of Holding AGM for the Companies"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Recently on <strong>21<sup>st<\/sup> April, 2020<\/strong> Ministry of Corporate Affairs (MCA) issued the circular for companies under which authority provided the ease of holding AGM (Annual General Meeting) due to the outbreak of COVID-19.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-mca-relieved-date-of-holding-agm-for-the-companies\/#Provisions_of_Holding_AGM_Annual_General_Meeting_as_per_Companies_Act_2013\" >Provisions of Holding AGM (Annual General Meeting) as per\nCompanies Act, 2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-mca-relieved-date-of-holding-agm-for-the-companies\/#Why_Government_has_eased_the_deadlines_of_holding_AGM\" >Why Government has eased the\ndeadlines of holding AGM?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-mca-relieved-date-of-holding-agm-for-the-companies\/#What_step_has_been_taken_by_the_government_regarding_this\" >What step has been taken by the\ngovernment regarding this?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-mca-relieved-date-of-holding-agm-for-the-companies\/#Applicability_of_the_Relaxed_Deadline\" >Applicability of the Relaxed\nDeadline<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-mca-relieved-date-of-holding-agm-for-the-companies\/#Penal_Provisions_%E2%80%93_Defaulting_in_Convening_AGM\" >Penal Provisions \u2013 Defaulting in Convening AGM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-mca-relieved-date-of-holding-agm-for-the-companies\/#Extension_Provisions\" >Extension Provisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-mca-relieved-date-of-holding-agm-for-the-companies\/#Takeaway\" >Takeaway<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Provisions_of_Holding_AGM_Annual_General_Meeting_as_per_Companies_Act_2013\"><\/span>Provisions of Holding AGM (Annual General Meeting) as per\nCompanies Act, 2013<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per <em><strong>Section 96 of the Companies Act, 2013<\/strong><\/em><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/ebooks.html\"><strong>[1]<\/strong><\/a><\/sup><strong> <\/strong>, an Annual General Meeting is hold by the Company every year in a following below mentioned intervals:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"670\" height=\"334\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-92.png\" alt=\"\" class=\"wp-image-7279\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-92.png 670w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-92-300x150.png 300w\" sizes=\"(max-width: 670px) 100vw, 670px\" \/><\/figure>\n\n\n\n<p>This meeting is\nhold by giving 21 days advance notice to all the members and not more than 15\nmonths should be elapsed between two AGMs. <\/p>\n\n\n\n<p>The main purpose of holding <a href=\"https:\/\/corpbiz.io\/learning\/annual-general-meeting\/\"><em><strong>Annual General Meeting<\/strong><\/em><\/a> is to obtain approval of financial statements from the members of the company. Other than this, ordinary as well as special business also transacted at the Annual General Meeting. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Government_has_eased_the_deadlines_of_holding_AGM\"><\/span>Why Government has eased the\ndeadlines of holding AGM?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As we all are undergoing <strong><em>social distancing norms and substantial limitations due to outbreak of COVID-19<\/em><\/strong>, it has become difficult for companies to hold Annual General Meeting whose financial year closed on December 31, 2019. Consequently regarding the same, Indian government received a number of representations from stakeholders. As a result of which government authority issued circular for providing ease of holding AGM.&nbsp; <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_step_has_been_taken_by_the_government_regarding_this\"><\/span>What step has been taken by the\ngovernment regarding this?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With a view to\nprovide ease to companies, government issued a circular addressing all the ROCs\n(Registrars of Companies), RDs (Regional Directors) as well as &nbsp;Stakeholders stating that, <\/p>\n\n\n\n<p><div class=\"shadow1\">\u201cCompanies whose financial year (other than first financial\nyear) has ended on <strong>31st December 2019<\/strong>,\ncan hold their AGM within a period of nine months from the closure of the\nfinancial year (i.e. by 30th September, 2020), and this shall not be viewed as\na violation. The references to the due date of AGM or the date by which the AGM\nshould have been held under the Act or the rules made thereunder into construed\naccordingly.\u201d<\/p><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_the_Relaxed_Deadline\"><\/span>Applicability of the Relaxed\nDeadline<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Considering amid COVID-19 pandemic and countrywide lockdown, the ministry has relaxed deadline for holding AGM for <strong><em>companies whose financial year ended on 31<\/em><sup><em>st<\/em><\/sup><em> December 2019<\/em><\/strong><em>. <\/em><\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/mca-issues-clarification-on-spending-of-csr-funds-for-covid-19\/\">MCA issues clarification on the spending of CSR funds for COVID-19<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penal_Provisions_%E2%80%93_Defaulting_in_Convening_AGM\"><\/span>Penal Provisions \u2013 Defaulting in Convening AGM<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Penalty provisions regarding the default made in holding AGM are defined under <strong><em>Section 99 of the Companies Act, 2013<\/em><\/strong>, as per which every office officer in default shall be punishable with fine which may extend to Rs. 1,00,000\/- while in case of continuing default it will go up to Rs. 5,000\/- per day. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Extension_Provisions\"><\/span>Extension Provisions <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per <strong><em>Section 96(1) of the Companies, Act, 2013<\/em><\/strong>, the Registrar of Companies (ROC) may extend the time limit of holding AGM up to maximum period of three months; however extension doesn\u2019t apply on first AGM. In order to apply for extension, an application needs to be submitted in <strong><em>e-form GNL-1<\/em><\/strong>. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Takeaway\"><\/span>Takeaway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Keeping in mind the difficulty faced by stakeholders due to COVID-19 social&nbsp;distancing norms and consequential restrictions MCA issued circular on 21st April 2020 to notify that companies whose financial year (other than first financial year) ended on 31st December, 2019, can convene their AGM within nine months from the closure of the financial year (i.e. by 30th September, 2020), and it shall not be viewed as a violation.<\/p>\n\n\n<a href=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/AGM.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">AGM<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently on 21st April, 2020 Ministry of Corporate Affairs (MCA) issued the circular for companies under which authority provided the ease of holding AGM (Annual General Meeting) due to the outbreak of COVID-19. Provisions of Holding AGM (Annual General Meeting) as per Companies Act, 2013 As per Section 96 of the Companies Act, 2013[1] , [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":7251,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153],"tags":[516],"acf":{"service_id":"27"},"authorName":"Soniya Khanna","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/06\/MicrosoftTeams-image-23.jpg","authorDescription":"Soniya Khanna is a legal professional, known for her expertise in corporate law, intellectual property and contract negotiation. With over 7 years of experience in the legal field she regularly contributes to legal publications, shares her insights on emerging legal trends and provide practical advice to readers.","postViews":9227,"readingTime":2,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7240"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=7240"}],"version-history":[{"count":16,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7240\/revisions"}],"predecessor-version":[{"id":48600,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7240\/revisions\/48600"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/7251"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=7240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=7240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=7240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}