Companies given 2 more months to hold their AGMs

The government has decided to give a two month extension to companies to conduct their annual general meetings (AGM) for financial year 2020-21.

The extension is being given on account of the wave of disruptions caused by the second wave of Covid and lockdowns in various parts of the country. Several companies had approached the Ministry of Corporate Affairs for this relief to enable them to comply with statutory provisions contained in the Companies Act.

The MCA has now directed the Registrar of Companies to to issue orders extending the dates for completion of AGMs by two months from present September 30 to November 30.

An AGM is held to have an interaction between the management and the shareholders of the company. The Companies Act, 2013 makes it compulsory to hold an annual general meeting to discuss the yearly results, auditor’s appointment, and so on.

The meeting also considers the director’s report and auditor’s report, dividend declaration to shareholders, appointment of directors to replace the retiring directors, appointment of auditors and deciding the auditor’s remuneration and any other business as decided by the management.