MCA extends timeline to conduct AGMs by 2 months till November, 2021
The Ministry of Corporate Affairs (MCA), taking into account the many difficulties faced due to second wave of Covid-19 and consequent lockdowns in the country extended the due date for conducting the Annual General Meeting (AGM) by the companies. As per Section 96 of the companies Act, 2013 every company should hold at least one AGM in a year. A company must hold AGM every year within 6 months from the closing of the financial year.
AGM provide shareholders of a company to put forward their views and suggestions in the business or key transactions of the company. Failure to hold AGM attracts penalty on the directors of the company.
The Companies Act provides to issue 21 days notice to the members stating the details of the meeting before conducting an AGM. But due to the sudden outbreak of the second wave of Covid-19, the MCA extended time limit to hold the AGM for the financial year 2021 till 30th November, 2021.
The MCA vide CL-II-03/252/2021 Issued on 23rd September, 2021 provides that companies can hold its AGM by 30th November, 2021 as against the regular date of conducting AGM within 30th September,2021
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