The Registrar of Companies, Hyderabad, has said companies in Telangana that are unable to conduct annual general meeting for the financial year 2019-20 by the September 30 deadline, in view of COVID-19, are being given a three-month extension to hold the AGM.
Stating that a common order in this regard has been issued, the Registrar of Companies Josekutty V.E. said there were about 60,000 active companies in the State that ought to hold their AGM for the financial year ended March 31, 2020, on or before September 30. The companies unable to hold the AGM within the date, in view of the pandemic, were required to file an application in GNL-1 to the Registrar for grant of extension of time. But with the issue of common order, granting three months’ extension for holding the AGM, such companies would benefit. They will not be required to file individual applications before the RoC for extension of time for holding AGM, he said in a release.
He clarified that the extension order will cover pending applications filed by companies, seeking extension, as well as applications filed for the extension but rejected by the Registrar. The office of RoC functions under the Union Ministry of Corporate Affairs.
According to Mr. Josekutty, the common order follows various representations from companies, industry bodies and professional institutes pointing out that several companies are finding it difficult to hold AGM for 2019-20 in view of the difficulties faced due to COVID-19. “The Ministry of Corporate Affairs has considered the difficulty faced by the corporate sector and directed Registrar of Companies to consider extension of time for holding AGM for the financial year ending on 31-3-2020 by issue of common order,” he said.
As per a provision of the Companies Act, 2013, in case it is the first AGM, it has to be conducted within nine months from the date of closing of the first financial year of the company; while others need to do so within six months from the date of closing of the financial year.