MCA Clarification on Annual General Meeting (AGM) 2022

Holding an Annual General Meeting is a yearly procedure to be followed by every company. The Ministry of Corporate Affairs vides a General Circular No. 21/2021 dated December 14th, 2021, issued a clarification on holding of Annual General Meeting (AGM) through Video Conference (VC) or Other Audio-Visual Means (OAVM). With this circular MCA announced that it has been decided to allow companies to organize the AGMs in 2022 for the financial ending before/on 31.03.2022 through Video Conference (VC) or Other Audio-Visual Means (OAVM) as per respective due dates by 30-06-2022. The present article briefs the MCA Clarification on Holding Annual General Meeting (AGM) 2022.

Annual General Meeting

Section 96 of the Companies Act, 2013 covers the provisions relating to the Annual General Meeting (i.e., AGM).

Every company is required to hold a general meeting each year. One person company is not required to hold the AGM.
In the case of the first AGM, it should be held within nine months from the end of the first financial year. However, in any other case, the AGM should be held within six months from the end of the financial year.

For details on Procedure to Conduct Annual General Meeting through Video Conference (VC) or Other Audio-Visual Means (OAVM), click here

Clarification on Annual General Meeting (AGM) 2022

The MCA on December 14th, 2021 provided more leeway for companies in terms of holding annual general meetings in virtual mode.

The relaxation will be applicable for companies planning to hold their annual general meetings (AGMs) next year for the financial year 2021-22.
Companies proposing to hold their AGMs in 2022 for the financial year ended/ending any time before/on March 31, 2022, have been allowed to conduct the same through the virtual mode till June 30, 2022
The companies can conduct their AGMs through video conference (VC) or other audio-visual means (OAVM).

The official notification about the Clarification on Annual General Meeting (AGM) 2022 is attached here for reference:

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Important Announcement

The MCA also clarified that the circular should not be construed as conferring any extension of time for holding AGMs by the companies under the Companies Act, 2013. The companies which have not adhered to the relevant timelines shall be liable to legal action under the appropriate provisions of the Companies Act. On December 8th, 2021, MCA had allowed the companies whose AGMs are due in the Year 2021, to conduct their AGMs on or before June 30, 2022. It is important to remember that conducting the Annual General Meeting of a Private Limited Company is a simple affair that is not complicated. For more information about Private Limited Company or Annual General Meeting, visit IndiaFilings.com

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Frequently Asked Questions

The purpose of the MCA Clarification on Annual General Meeting (AGM) 2022 is to allow companies to organize their AGMs for the financial year ending on or before March 31, 2022, through Video Conference (VC) or Other Audio-Visual Means (OAVM) until June 30, 2022. This provides more flexibility for companies to conduct their AGMs virtually due to the ongoing COVID-19 situation.

According to Section 96 of the Companies Act, 2013, every company (except One Person Company) is required to hold a general meeting each year, called the Annual General Meeting (AGM). The first AGM should be held within nine months from the end of the first financial year, and subsequent AGMs should be held within six months from the end of the financial year.

No, the MCA Clarification on Annual General Meeting (AGM) 2022 does not allow companies to hold their AGMs through virtual means indefinitely. The relaxation is only applicable for AGMs to be held in 2022 for the financial year ending on or before March 31, 2022. Companies have to conduct their AGMs as per the regular provisions of the Companies Act, 2013, after June 30, 2022.

No, the MCA has clearly stated that this circular should not be construed as conferring any extension of time for holding AGMs by the companies under the Companies Act, 2013. Companies that have not adhered to the relevant timelines shall be liable to legal action under the appropriate provisions of the Companies Act.

No, One Person Companies (OPCs) are not required to hold Annual General Meetings (AGMs) as per the provisions of the Companies Act, 2013.

According to the MCA Clarification on Annual General Meeting (AGM) 2022, companies proposing to hold their AGMs in 2022 for the financial year ended/ending any time before/on March 31, 2022, can conduct the same through video conference (VC) or other audio-visual means (OAVM) till June 30, 2022.

Yes, the MCA has issued detailed guidelines and procedural requirements for companies to conduct their AGMs through Video Conference (VC) or Other Audio-Visual Means (OAVM). These guidelines cover aspects such as ensuring secure participation, voting procedures, and maintaining proper records of the proceedings.

An Annual General Meeting (AGM) is a yearly meeting of a company's shareholders, where they can discuss and approve important matters related to the company's operations, financial statements, appointment of directors and auditors, and other significant decisions.

Yes, the MCA Clarification on Annual General Meeting (AGM) 2022 does not mandate holding AGMs through virtual means. Companies are free to choose whether they want to conduct their AGMs physically or through Video Conference (VC) or Other Audio-Visual Means (OAVM), as per their convenience and regulatory requirements.

If a company does not hold its Annual General Meeting (AGM) within the prescribed time limit as per the provisions of the Companies Act, 2013, it shall be liable to legal action under the appropriate provisions of the Act. The MCA has clarified that this circular should not be construed as providing any extension of time for holding AGMs beyond the prescribed limits.