Regulatory Alert - Extension of time for holding Annual General Meeting for financial year ended 2020-21
24 September 2021
Due to the challenges faced on account of the on-going Covid-19 pandemic, companies were finding it difficult to finalise the accounts, get the accounts audited and accordingly place the audited financial statements for the financial year 2020-21 before the shareholders of the Company in a duly convened Annual General Meeting (AGM) before 30 September 2021.
Accordingly, considering representation from several stakeholders and pursuant to the instruction from the Ministry of Corporate Affairs (MCA), each Registrar of Companies (RoC) has passed an order dated 23 September 2021 (Order) to extend the due date of the AGM.
We, at BDO in India, have analysed and summarised the said Order hereunder:
Extension of due date
The due date of convening an AGM as per first proviso of section 96(1) of the Companies Act, 2013 (the Act) is extended by a period of 2 months from the due date by which the AGM ought to have been held.
- Pending applications filed in form GNL-1 for the extension of AGM for the financial year ended on 31 March 2021, which are yet to be approved
- Applications filed in form GNL-1 for the extension of AGM for the financial year ended on 31 March 2021, which were rejected
- Applications filed in form GNL-1 for the extension of AGM for the financial year ended on 31 March 2021, where the extension approved was for a period less than 2 months
This Order is not applicable:
- For extension of period of first AGM of a company; and
- For applications filed in form GNL-1 for the extension of AGM where the extension approved was for a period of more than 2 months
- This is a welcome extension granted by the MCA considering the difficulties faced by corporates to finalise their financial statement for the financial year 2020-21 in the wake of the Covid-19 pandemic.
- Corporates must take a note that the extension is not a blanket extension till 30 November 2021 - but it is granted for 2 months from the due date of conducting the AGM.