The companies made representations to the MCA that prevailing disruption in logistics due to covid-19, has brought the audit and compliance work under lot of strain particularly for mid-size companies
Mumbai: The Ministry of Corporate Affairs (MCA) in a circular on Monday clarified that companies would need to seek specific approvals to defer their annual general meeting till 31 December. As per the current rules companies need to hold AGMs within six months of the fiscal ending. The companies owing to the pandemic had sought extension till end of the year.
The MCA in the circular said companies have been granted relaxations of holding the AGMs through the video conferencing method to overcome the social distancing and travelling challenges brought about due to the pandemic.
However, the companies made representations to the MCA that prevailing disruption in logistics due to covid-19, has brought the audit and compliance work under lot of strain particularly for mid-size companies.
"It is once again reiterated that companies unable to hold their AGMs for the year ended 31 March 2020 despite availing the relaxations ought to file their applications for seeking extension of time in holding of AGMs for the financial year 2020 with the concerned registrar of companies (RoC) on or before 29.09.2020," said MCA in the circular.
MCA also advised RoC to view all these applications 'liberally' in view of the hardships faced by the stakeholders and to grant extension for maximum of three months.
To avoid last minute hardships the companies should not wait for the last date of 29 September to file the request as the approval if denied would culminate into a long drawn process of compounding penalty and non-compliance consequences for the companies.
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