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MCA clarification on holding of AGM or EGM through video conference or other video visual means for 2024 and 2025

An AGM is a yearly meeting where a company's shareholders and board of directors come together to discuss key aspects of the business. The meeting is mandatory and must be held within six months of the company's financial year-end. At the AGM, directors present an annual report to shareholders, updating them on the company's performance, strategy, and management. Shareholders have the opportunity to review the company's progress and exercise their voting rights.

According to the Companies Act, 2013 and the rules made there under a company must hold its AGM within a period of six months from the end of the financial year, i.e. within 30 September every year. Further, there can be a maximum gap of 15 months between two annual general meetings.

During the period of the COVID pandemic, the government issues certain circulars and formulated new rules regarding the holding of AGM/EGMs through video conferencing or other audio visual means. This facility of online meetings is still allowable under the law for certain specified purposes and periods.

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The Ministry of Corporate affairs vide its General Circular No. 09/2024, dated 19th September 2024, has issued a clarification. According to this circular, the MCA has decided to allow companies whose AGMs are due in the year 2024 or 2025 to conduct their AGMs through video conferencing or other audio visual means on or before 30th September 2025.

However, this general circular do not provide any extension into the statutory time limit of holding of AGM as provided under the Companies Act, 2013.

Further, the circular also allows companies to conduct their EGMs through video conferencing or other audio visual means or transact items through postal ballot in accordance with the frame of provided in the above mentioned circular upto 30th September 2025.

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