AGM by video conferencing

MCA has issued a very confusing circular no. 2/2021 dated 13/1/2021 wherein they have allowed companies to hold their annual general meetings of their shareholders via video conferencing means upto end of 2021 i.e. upto 31st December 2021.

In the same breath they also say that this does not confer any extension of time to hold AGM for companies and they remain liable to be prosecuted for any compliances on that count.

Its a very confusing circular worded very badly, one needs to read it half a dozen times to understand what it means.

Its a pity that MCA officers do not understand the ground reality – that many companies and their office staff are still held back due to the covid pandemic and are not attending their offices, ditto for auditors staff. The local trains of Mumbai which is the lifeline of Mumbai has not been opened for the general public. In absence of that commuting becomes extremely difficult.

Government could very well have extended the time to hold the AGM for companies having march 2020 as their annual closing date, despite the section allowing only 3 months extension, what prevented the government from passing an ordinance to that effect.

Copy of the above circular can be found at the MCA site.

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