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Extension for holding Annual General Meeting

According to Section 96 of the Companies Act, 2013 (“Act”), companies are to hold their annual general meeting (“AGM”) within a period of 6 (six) months from the date of closing of the financial year and companies which are to hold their first AGM shall be held within a period of 9 (nine) months from the date of closing of the first financial year of that company.

But due to the widespread of COVID-19 and social distancing norms and consequential restrictions linked thereto, the Ministry of Corporate Affairs (“MCA”) has received various representations from the stakeholders of the companies which follow the financial year, beginning from 1st January and ending on 31st December, regarding the difficulty faced by the stakeholder for holding the required AGM as the financial year of such companies has ended on 31.12.2019, and according to the timelines specified are to hold their AGM by 30.06.2020.

On account of such difficulties received from the stakeholders, MCA has hereby clarified that the companies whose financial year (other than first financial year) has ended on 31.12.2019, hold their AGM for such financial year within a period of 9 (nine) months from the closure of the financial year, i.e., 30.09.2020 and the same shall not be held as a violation and the due date for holding such meeting shall be construed accordingly.