Covid-19 impact: MCA gives companies three more months to hold AGM for FY20

The Ministry of Corporate Affairs (MCA) has given a three-month extension to companies to hold the annual general meeting (AGM) for the year 2019-20 due to the Covid-19 pandemic, in a relief to around 1.2 million companies.
 

Companies are required to hold the AGM within six months of the end of a financial year which means by September 30, 2020 for FY20. Now, they can hold it by December 31 this year.
 

The MCA issued directions to the registrar of companies (ROCs) to issue orders to even those who have not filed formal applications to this effect. Even those applications, which have already already filed, but not approved, or rejected, are also covered under this relief, MCA said in a release.
 

Earlier, companies had been allowed to seek exemption before September 29 if they were unable to hold AGM due to the Covid-19 pandemic.
 

The ministry said it was for the first time that such a relief was being given to all companies.
 

The MCA had earlier allowed companies to hold virtual AGMs due to Covid-19. However, companies were finding it difficult to complete the audit functions and finalise the annual reports.