Providing a relaxation in compliance requirements, the government has given time till September-end for a certain section of companies to conduct their annual general meetings.
The relaxed deadline would be applicable only for companies whose financial year ended on December 2019, the corporate affairs ministry said on Tuesday, amid the coronavirus pandemic and nationwide lockdown.
"If the companies whose financial year (other than first financial year) has ended on December 31, 2019, hold their AGM for such financial year within a period of nine months from the closure of the financial year (ie. by 30th September 2020), the same shall not be viewed as a violation," it said in a circular.
According to the ministry, a company can hold its AGM within six months from the closure of the financial year and not later 15 months from the date of last AGM. If it is the first AGM, then a company can conduct the same within nine months from the end of a fiscal.
The ministry has already permitted corporates to hold extraordinary general meetings and board meetings through video conferences and to seek approval for proposals through an electronic voting facility.
These measures have been taken in the wake of the coronavirus pandemic
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