top of page

COMPANIES LAW: MCA extends due date for AGMs by two months

In what could come as some respite for companies, especially small and medium ones, the Ministry of Corporate Affairs (MCA) has extended the due date for holding annual general meetings (AGMs) for the financial year 2020-21 by two months.


This extension would mean that companies now have time till the end of November 2021 to hold the AGM. Under company law, corporates are required to hold AGM within six months from the date of completion of the financial year — i.e September 30.



This latest MCA move comes in the wake of representations received by the Ministry seeking extension of time for holding of AGM for FY21. The representations were made as both companies and the audit fraternity faced difficulties due to the second wave of Covid and consequent lockdowns.


Some corporate observers however felt that the extension of the due date by two months may still be inadequate given that the audit processes have been hampered due to pandemic-induced local travel restrictions in many States.


Relief for companies


Ashish Chhawchharia, Partner and National Head - Restructuring Advisory at Grant Thornton Bharat said, “Given the turbulent impact that the second wave of Covid-19 has had, this proposed move has come in as much-needed relief. This was something several corporates had sought after since in the normal course of business, their functioning had been hampered. The tax authorities have also extended the deadline for tax filing, so this proposed extension will help align the compliance requirements.”


Aseem Chawla, Managing Partners, ASC Legal, said, “The prescription of extension is welcome and much-anticipated respite considering that normalization of proper bookkeeping and record maintenance is somewhat still distant. The prelude to this reprieve is the extension of dates for income tax filings and tax audits announced recently. This put together would alleviate some hardship.”


Khazat Kotwal, partner, Deloitte India, said that MCA’s decision to extend the reporting timelines for holding AGMs due to the COVID19 related disruptions during 2020-21 is a welcome relief for corporate India. “This is especially helpful for SMEs and our start-ups since they have been facing several difficulties including business disruptions, changes in operating models, work from home, and availability of people”, Kotwal said.




 


Credit: thehindubusinessline

25 views2 comments

2 comentários


Paul
Paul
17 de out. de 2023

The recent move by the MCA to extend the due date for AGMs underlines the importance of adaptability in the corporate world, especially in these unpredictable times. This flexibility is a testament to understanding the multifaceted challenges businesses face. However, as companies navigate the complexities of regulatory frameworks, they must also be cognizant of other legal obligations, including ensuring the safety and well-being of their employees. Workplace injuries, unfortunately, can be an overlooked aspect amidst other corporate concerns. In such scenarios, having a reliable legal partner becomes imperative. Harrison Injury Law, with its proven track record, ensures that businesses and their employees are well-equipped to handle personal injury matters, offering guidance that is both comprehensive and compassionate. In a constantly…

Curtir

Forest Gamp
Forest Gamp
27 de set. de 2023

The MCA's decision to extend the due date for Annual General Meetings (AGMs) by two months is a welcome relief for companies navigating the challenges posed by the ongoing global circumstances. This extension offers much-needed flexibility and recognizes the complexities many organizations face in complying with statutory obligations. It highlights the government's commitment to supporting businesses during these trying times. Just as Paul Mankin is recognized for providing expert legal counsel, this regulatory adjustment demonstrates an understanding of the practical difficulties companies encounter and aligns with the spirit of facilitating smoother corporate governance. It's a pragmatic step forward that promotes responsible corporate compliance while acknowledging the realities of the business environment.


Curtir
bottom of page