JOIN USCoronavirus crisis: Govt allows companies to hold annual general meetings through video conferencing mode
The government has allowed companies to conduct annual general meetings this year through video conferencing and other audio-visual means amid the coronavirus pandemic.
In the wake of the pandemic and subsequent nationwide lockdown, that have disrupted economic activities, the ministry, which is implementing the companies law, has been providing various relaxations in terms of compliances from time to time.
"On account of need for continuous adherence to the social distancing norms and restrictions placed on movement of persons, it has become necessary and hence it has been decided to allow companies to hold their AGM by video conferencing or other audio visual means during the calendar year 2020," it said in a release on Tuesday.
The decision by the corporate affairs ministry would come as a relief for all corporates as they are required to hold their Annual General Meetings (AGMs) within six months from the end of a financial year.
For conducting the first AGM, companies have nine months from the end of a financial year.
Last month, the ministry permitted companies whose financial year ended on December 31, 2019 to hold their AGMs by September 30, 2020.
Owing to the difficulties in sending physical copies, companies have been permitted to send financial statements, along with board's reports, auditor's reports and other documents required to be attached therewith, only through e-mail.
The companies are also required to provide a window to the shareholders for registering their mandate for transferring dividends electronically to them through the Electronic Clearing Service (ECS) or any other means, as per the ministry.
There are nearly 12 lakh registered companies that are active in the country.