The Ministry of Corporate Affairs (MCA) has given a big relief to around 12 lakhs companies by extending the timeline for holding Annual General Meeting (AGM) by three months from the due date.
The ministry issued a direction to Registrar of Companies (RoC) to issue an order without the filing of formal applications and payment of the fee.
"A big relief is given by Ministry of Corporate Affairs (MCA) to around 12 lakhs companies today by extending the timeline for holding Annual General Meeting till December 31 from September 30," read the order by the Ministry of Corporate Affairs.
"MCA issued directions to RoCs to issue orders without the filing of formal application and payment of the fee. Even applications already filed but not approved or rejected are also covered for this relief," it said.
"MCA is extending this timeline due to COVID-19 and Meeting the demand from various associations for extending time to hold AGM," the order said.
The MCA is extending this timeline due to COVID-19 keeping in view the demand of companies and professionals for extending the time to hold the AGM."It has been decided that RoC should be directed to accord approval for the extension of time for a period of three months beyond the due date by which companies are required to conduct their AGMs for the financial year 2019-2020 ending on March 31, 2020," said the MCA in a statement.Earlier last month, MCA has issued a clarification to its order that no general extension for the due date of holding AGM for the financial year 2019-20 has been given, but according to today's order companies need not file an application for extension of time to hold AGM.
Though the MCA had allowed companies to hold virtual AGMs using audio-video applications, the prevailing pandemic crisis had made it a logistical nightmare for companies to complete the audit functions and finalise the annual reports.