During lockdown, due to COVID-19, Government allows the companies to hold their AGM through video-conferencing.
On Tuesday, the Minister of Corporate Affair (MCA) allowed companies to conduct AGM (Annual General Meetings) of this year (2020) through the video conferences and other visual modes during the corona virus situation in the country. These crises disturbed the financial condition of the country due to nationwide lockdown. The Ministry of Corporate Affair (MCA) has been providing various relaxations for the companies from time to time.
COVID-19, a dangerous virus and to protect themselves or others have to follow the guidelines of government and the mainly is social distancing, that’s why our country, going through nationwide lockdown since 24 March 2020 and to continuing this, should have to maintaining social distancing. This is the reason, Ministry of Corporate Affair (MCA) allowed the companies to conduct AGM (Annual General Meetings) through video conferences, in this way social distancing maintain and also the restriction on the movement of people could be followed.
Earlier, the Ministry of Corporate Affair (MCA) allowed the companies whose financial year ended on December 31, 2019 to hold their AGM by September 30, 2020.
Now the decision by the Ministry of Corporate Affairs, it comes as a relief for all the companies as they required holding their AGM (Annual General Meetings) within six months from the end of a financial year. And the companies have nine months from the December 31, 2019, for conducting the first AGM (Annual General Meetings).
Facing difficulties in sending the physical copies, then the companies have been permitted to send financial statements, along with the board’s reports, auditor’s reports and other documents required to attached, this could be send only through e-mail.
There are approx. 12 lakh companies in India which are registered and for the companies, requirement for a window to the shareholders for registering their mandate for transferring the dividends electronically.
