AGM extension

MCA has not given any extension of time to hold annual general meetings (AGM) of the shareholders of the companies whose financial year ended on 31st March, 2020. Such companies are required to hold their AGM on or before 30th September, 2020 failing which it will amount to violation of section 96 of the companies act, 2013. The maximum extension that can be given under the Act is 3 months i.e. upto 31st December, 2020.

What the MCA has directed companies to do is to ask them to file request for extension of AGMs and that should be filed on or before 29th September, 2020. In fact it is advisable to file the same well before that date. Invariably there is a corruption involved in such applications and the closer you apply to 30th September, 2020, the higher are their rates.

MCA has directed its officials to consider such applications favorably, but time will only tell ………

Their application needs to be filed in form GNL-1 and enclosing board resolution for making the application and the application itself laying down grounds due to which the extension ought to be given.

MCA has issued a circular no. 28/2020 dated 17th August, 2020, which is available on their site.

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