Due to the Covid-19 pandemic, the ministry of corporate affairs reduce the company compliance burden on the corporate sector with partial opening up the industry, MCA has received several representations to allow companies to Extension of AGM (Annual General Meeting) date for the financial year. In this article, we discuss the extension of the AGM date and its key aspects. |
Know About AGM
An annual general meeting (AGM) is a yearly meeting between the shareholders of a company and its board of directors. Usually, this is the only time that the directors and shareholders will meet throughout the year, so it is a chance for the directors to present the company’s annual report.
What happens at an annual general meeting?
During an AGM, a company’s performance is examined and its future strategy is discussed. This is a chance for shareholders to question the board, get answers for unsatisfactory performance, and challenge them in the direction of the company.
• An AGM is a time to praise good returns. • Votes can also be checked during an AGM, allowing shareholders to vote on company decisions, and fill any vacant positions on the board of directors. • Shareholders who prefer not to attend the meeting can normally vote by proxy, which can be made by post or by giving permission for another shareholder to vote on their behalf.
Extension of AGM Date
Due to the widespread of COVID-19 and social distancing measures and significant restrictions, MCA has received several requests to allow companies to extend of AGM date for the financial year ended. The topic was reviewed where MCA published the circular number dated 05.05.2020 concerning holding of AGM through video conferencing. Again MCA published General Circular no. 28/2020 dated 17th August 2020 has published a clarification on the extension of the AGM date for the financial year ended as at 31.03.2020. Know more about the extension of the AGM date in detail.
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