Govt allows companies to hold AGMs through Video Conferencing or OAVM

New Delhi: The Ministry of Corporate Affairs (MCA) on Tuesday allowed companies to hold their annual general meeting (AGM) by Video Conferencing (VC) or other audio visual means (OAVM) during the calendar year 2020 amidst the COVID-19 crisis.

"On account of need for continuous adherence to the social distancing norms and restrictions placed on movement of persons, it has become necessary and hence it has been decided to allow companies to hold their annual general meeting (AGM) by Video Conferencing (VC) or other audio visual means (OAVM) during the calendar year 2020," the ministry said in an official release.

The MCA had last month allowed the companies whose financial year ended on 31st December, 2019, to hold their AGM by 30th September, 2020.

The framework provided in the earlier Circulars for holding of extraordinary general meeting (EGM) would be applicable mutatis mutandis for conduct of AGMs during 2020, based on the classification of companies which are required to: 
(i) provide the facility of e-voting or have opted for the same, and 

(ii) those companies which are not required to provide such a facility.

Owing to the difficulties in sending physical copies of the financial statements, the Circular allows the companies to send the financial statements, along with Board’s reports, Auditor’s reports and other documents required to be attached therewith, only through email. 

The companies are also required to provide a window to the shareholders for registering their mandate for transferring dividends electronically to them through the Electronic Clearing Service (ECS) or any other means.

Companies are required to hold their AGMs within six months from the end of a financial year while those companies who are conducting their first AGM, have nine months' time from the end of a financial year.