MCA Clarification on Annual General Meeting (AGM) 2022
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:
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
