FAQs on Extension of AGM Due Date!!
Existing Provision on AGM under section 96(1) of Companies Act, 2013
Every company other than One Person Company (OPC) shall in each year hold in addition to any other meeting, a general meeting as its annual general meeting, and shall specify the meeting as such in the notices calling it. The gap between the Two AGM shall not exceed 15 months.
As directed by the Companies Act 2013, the Annual General Meeting (AGM) for newly incorporated company is required to be held within 9 months from the closing of the first Financial Year in case if it is the first AGM.
For other companies, AGM needs to be conducted within a period of 6 months starting from the expiry of the Financial Year.
For Example: If the first financial year of any company is closed on 31.03.2020, then the last date until the company needs to convene AGM is 31.12.2020 i.e. 9 months from 31.03.2020. In the case of companies whose financial year ends as on 31.03.2020, the last date till the company needs to convene AGM is 30.09.2020 i.e. 6 months form 31.03.2020.
The Registrar of Companies may, if application made in e-form GNL-1 for special reason may extend the due date for any AGM except First AGM for a period not exceeding 3 months.
AGM Due date Extension Granted to Companies
Earlier Last month the MCA issued a Clarification letter stating that those companies who are finding it difficult to hold AGM may apply with their ROC on or before 29th September 2020, in form GNL-1 for seeking an extension of holding AGM. But many companies find it difficult to get approval from ROC and made representation to MCA to grant a general relief.
Subsequent to which MCA granted the following reliefs:
The time within which the AGM of the F.Y. ended 31.03.2020 (i.e. 30.09.2020) has been extended for 3 months from the due date from which the AGM ought to be held without filing of E-form GNL-1. For Example: if the due date of holding AGM of any company is 30.09.2020 then a general extension of 3 months is granted and it can hold its AGM till 31.12.2020.
This extension is not for the first AGM of any company. Therefore still the last date for holding 1st AGM of any company is 9 months from the closure of the first financial year.For Example: if the first financial year of any company is closed as on 31.03.2020 then the last date to hold AGM is 31.12.2020 it should not be taken as 31.03.2021.
The extension shall cover all the pending applications filed in form GNL- 1 for extension of AGM for the F.Y. ending 31.03.2020, which are yet to be approved.
FAQs on AGM Due Date Extension
1. Is there required to file a separate GNL-1 for the general extension? NO, there is no requirement to file any separate GNL-1 for the extension. It shall be deemed to have been granted an extension of 3 months for all the companies.
2. If any prior approval for the extension is granted via. E-form GNL-1 for a term less than 3 months then what shall be the last date to hold AGM? It shall be deemed that the extension was granted for 3 months revoking the earlier extension.
3. Whether any refund will be granted for any earlier approved GNL-1 file? No, there shall be no refund to be granted. 4. Is Extension for all types of Companies? The Extension is granted to all types of Companies except OPC.