Economy

Cochin Chamber of Commerce and Industry seeks time for holding AGM

Our Bureau Kochi | Updated on September 17, 2021

In view of the Covid situation in Kerala

The Cochin Chamber of Commerce and Industry has sought extension of time up to December 31 for small and medium corporates to hold their annual general meeting in view of second wave of Covid-19 sweeping Kerala for the second successive year.

The second wave of Covid-19 has affected Kerala, with the State clocking nearly 50 per cent of the fresh cases in the country. This has significantly affected the regular functioning of the accounts and other administrative departments of many government companies as well as unlisted private/public companies and consequently they have not been able to get the accounts for year ended March 31 audited. The auditors' firms were also badly affected as many of their staff had also been identified positive.

Also read: Cochin Chamber of Commerce and Industry seeks review of RBI circular on current accounts

Though the corporates had approached the Registrar of Companies for granting of extension of time for holding AGM from the stipulated date of September 30 to December 31, these are routinely rejected stating that there were no extraordinary circumstances and grounds are general in nature.

As per MCA circular 2/2021 general permission is granted for all companies whose AGM were due to be held in 2020 or falling due in 2021 to conduct the same before December 31. As a result, the appointment of auditors for 2021 which are done in the annual general meeting also got delayed. Added to this, the frequent closure /absence of regular staff on account of second Covid wave in Kerala has resulted in the accounts and audit for March 31 not yet being completed. Consequently, many small and medium companies including government companies will not be able to hold the annual general meeting before September 30 and adopt the audited accounts.

“Thus, the situation is exceptional and hence the Cochin Chamber in its representation to the government requested that a direction be given to the Registrar of Companies to liberally grant extension of time for holding the AGM,” said K. Harikumar, the Chamber President.

Published on September 17, 2021

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