With India still grappling around pandemic induced restrictions, the Corporate Affairs Ministry (MCA) has further broad-based the earlier facility it had handed out for companies holding Annual General Meetings ( AGMs) through video conferencing.
It has now clarified that companies proposing to organise AGMs in 2022 for the financial year ended/ending any time before/on March 31, 2022, through video conferencing as per respective dates can do so by June 30, 2022.
This latest MCA clarification comes just a week after MCA had allowed companies whose AGMs are due to be held in 2021 ( FY 2020-21) to hold them via video conference till end June 2022. It also had last week clarified that companies can hold their extraordinary general meetings (EGMs) via video conference and transact items through postal ballot till end June next year.
Since the onset of Covid-19 pandemic in March last year, the MCA has been taking several measures to make life easy for India Inc to meet the company law’s compliance requirements.
Chandrika Sridhar, Partner, Deloitte India, said that the MCA clarification regarding holding AGM through video conference or OAVM is a welcome one and timely. “It will provide a breather for companies due to the continuing restrictions (and possible third wave considerations) relating to the pandemic”, she added.
Aseem Chawla, Managing Partner, ASC Legal, said that the clarification is enabling in nature which further extends the scope of allowing the Companies to hold AGM thru video conferences or Other Audio-Visual Means (OAVM) for the prior years as well. “All in all the aim is to facilitate compliance and orderly governance without impediments. It is expected that Companies would give due recognition to such facilitative means", Chawla said.