Ministry of Corporate Affairs (MCA) vide General Circular No. 18/2020 dated 21st April 2020 has provided certain relaxation in holding of Annual General Meeting (AGM) for those Companies whose financial year has ended on 31st December 2019.

As per Section 2(46) of the Companies Act, 2013, Companies which are holding, subsidiary or associate of a Company incorporated outside India can follow financial year other than ending on 31st March subject to approval of Central Government.

Now, those Companies whose financial year have closed on 31st December 2019 were required to conduct their AGM by 30th June 2020 (being six months from the date of end of financial year). MCA vide this general circular have provided relaxation to conduct the AGM up to 30th September 2020 in the light of current situation due to Covid – 19.

Extract from the MCA Circular

Several representations have been received from stakeholders with regard to difficulty in holding annual general meetings (AGMs) for companies whose financial year ended on 31st December, 2019 due to COVID-1 9 related social distancing norms and consequential restrictions linked thereto. These representations have been examined and it is noted that the Companies Act, 2013 (Act) allows a company to hold its AGM within a period of six months (nine months in case of first AGM) from the closure of the financial year and not later than a period of 15 months from the date of last AGM.

On account of the difficulties highlighted above, it is hereby clarified that if the companies whose financial year (other than first financial year) has ended on 31st December, 2019, hold their AGM for such financial year within a period of nine months from the closure of the financial year (i.e. by 30th September, 2020), the same shall not be viewed as a violation. The references to due date of AGM or the date by which the AGM should have been held under the Act or the rules made thereunder shall be construed accordingly.

MCA Notification –