Firms can be given three months’ extension to carry their AGMs
The Ministry of Company Affairs (MCA) has directed Registrar of Firms (RoC) to accord approval of three months extension to firms who haven’t capable of maintain their annual common conferences (AGMs) for the monetary yr ended March 31. “It has been determined that RoC must be directed to accord approval for extension of time for a interval of three months past the due date by which firms are required to conduct their AGMs for the monetary yr 2019-2020 ending on March 31, 2020,” stated the MCA in a press release.
Earlier final month, MCA has issued a clarification to its order that no common extension for the due date of holding AGM for monetary yr 2019-20 has been given. However such firms can file an software with their RoC on or earlier than September 29 in a specified kind (GNL-1) for searching for extension of time in holding of AGM for the monetary yr ended March 31.
These purposes can be seen by RoC and extensions can be granted for a most of three months, the round stated. Indian firms are required to carry AGMs with six months of closure of the monetary yr which implies earlier than September 30 for many who having March 31 as year-end.
Although the MCA had allowed firms to carry digital AGMs utilizing audio-video purposes, the prevailing pandemic disaster had made it a logistical nightmare for firms to finish the audit features and finalise the annual studies.
