On September 19, 2024, the Ministry of Corporate Affairs (MCA) issued a clarification regarding the conduct of Annual General Meetings (AGMs) and Extraordinary General Meetings (EGMs) through Video Conferencing (VC) or Other Audio Visual Means (OAVM) under the Companies Act, 2013.
Key Points of the Circular:
Extended Allowance for Virtual Meetings:
- Companies with AGMs due in 2024 or 2025 are permitted to conduct these meetings via VC or OAVM up to September 30, 2025.
- This provision aims to facilitate smooth conduct of meetings, especially for companies that may face logistical or accessibility challenges.
No Extension of Statutory Timelines:
- This allowance should not be interpreted as an extension of the statutory deadlines for holding AGMs. Companies are required to adhere to their respective statutory timelines under the Companies Act, 2013.
- Important Note: Companies failing to comply with these timelines may face legal action as per applicable provisions of the Act.
Implications for Companies:
- While this circular provides flexibility in the mode of meeting, it does not relax any compliance deadlines. Therefore, companies must ensure timely scheduling of their AGMs to avoid potential penalties or legal repercussions.
