Vijay C Roy
Tribune News Service
Chandigarh, September 8
Acceding to the request of corporations and business associations, the Central authorities has given a three-month extension for compliance necessities. Now, the companies can conduct their annual basic conferences (AGMs) until December-end.
According to an estimate, round 70,000 corporations are more likely to profit with this resolution within the area, comprising Haryana, Chandigarh, Punjab, Himachal Pradesh and J&Okay and Ladakh.
The new deadline of December 31 can be relevant just for corporations whose monetary 12 months ended on March 31, 2020, regardless of whether or not they have utilized for the extension of the AGM or not, in line with a round issued by the Ministry of Corporate Affairs
The Companies Act, 2013, gives that in case of the primary AGM of an organization, it shall be held inside 9 months from the date of closure of the monetary 12 months whereas in the remainder of circumstances, it shall be held inside six months from the date of closure of the monetary 12 months.
The new deadline can be relevant just for corporations whose monetary 12 months ended on March 31, 2020, regardless of truth whether or not they have utilized for the extension of the AGM or not, in line with a round issued by the Ministry of Corporate Affairs on Tuesday.
“It has been directed by the competent authority that the Registrar of Companies (RoCs) should be directed to accord approval for the extension of three months beyond the due date by which companies are required to conduct their AGMs,” mentioned the round.
According to the ministry, an organization can maintain its AGM inside six months from the closure of the monetary 12 months and never later than 15 months from the date of the final AGM.
In an announcement, the ministry mentioned it had acquired a number of representations from stakeholders akin to corporations and business associations with regard to issue in holding AGMs for corporations because of the Covid-related restrictions.
“With uncertainty looming over the spread of the Covid, the AGMs of many companies were getting postponed. The industry associations approached us for the relaxation in order to meet regulatory compliance. The ministry has taken the decision to extend it for three months,” mentioned Dr Raj Singh, regional director, Ministry of Corporate Affairs, and answerable for the northern area.