EXTENSION OF THE DEADLINE FOR THE ANNUAL GENERAL MEETING OF SHAREHOLDERS (AGM) FOR THE FISCAL YEAR ENDING MARCH 31, 2021

The Companies Act stipulates that, in particular, all companies other than One Person Company (OPC) are required to hold a general meeting such as the annual general meeting of shareholders in addition to other meetings, and no more than fifteen months must elapse between the dates of an annual general meeting and the next annual general meeting of a company.

The law stipulates that the first annual general meeting of shareholders should be held within nine months from the closing date of the company’s first fiscal year, and in other cases within six months from the end date of the fiscal year.

The law stipulates that a registrar may, for special reasons, extend the period of an annual general meeting of shareholders other than the first annual general meeting of shareholders for a period not exceeding three months.

Some companies are struggling to hold an annual general meeting for the fiscal year ending March 31, 2021 due to issues facing the Covid-19 pandemic.

In view of the above, the deadline for the annual general meeting of shareholders has been extended:

-other than the first AGM for the financial year ended on 31.03.2021
-for companies which are unable to hold their AGM

-for such period within the due date of holding the AGM

by a period of Two Months:

-from the due date by which the AGM ought to have been held in accordance with the provisions of the Act,

without requiring the companies to file applications for seeking such extension.

https://mca.gov.in/content/mca/global/en/data-and-reports/rd-roc-info/extension-agm.html

 

Frequently Asked Questions:

1. How to calculate the due date of your company; on or before earlier date of any of the following events:

-End day of 15th months from the Date of last AGM

-End day of 6th months from the date of closing of the financial year

For example, if a company held last AGM on June 10, 2020, the end day of the 15th month is September 10, 2021 and the end day of 6 months from the closing of financial year (March 31, 2021) is September 30, 2021. Here, earlier of both the dates will be the due date i.e. September 10, 2021.

2. How to calculate the extended due date of your company?

Extended due date for holding the AGM will be within an additional 2 months from the actual due date.

In the above example, the extended due date should come within Two months after the actual due date, which is November 10, 2021.  

3. Is your company eligible to take advantage of the extension?

The due date for holding the AGM should fall within or after the said period of two months.

For example, if due date is falling on or after July 23, 2021, your company was eligible to avail the extension on or after the date of issue of the general order of extension.

Disclaimer: The information in this article is a general guide for the target audience. Every effort has been made to avoid errors or omissions in this material. Nevertheless, errors can occur. Do not use this information as a substitute for a particular query. It is advisable to seek expert advice before addressing a particular issue. The author is not responsible for any direct, indirect, special or incidental damages resulting from or in connection with the use of this information.