ICAI issues clarification on holding of AGM through VC or OAVM

Last updated: 18 January 2021

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The Institute of Chartered Accountants of India (ICAI) has issued a clarification regarding the Annual General Meetings (AGMs) of companies. Companies whose AGMs were due in 2020 or become due in 2021 can now hold them via Video Conferencing (VC) or Other Audio Visual Means (OAVM) up until 31st December 2021. This clarification follows a circular from the Ministry of Corporate Affairs.

ICAI issues a general circular regarding the holding of Annual General Meetings via Video Conferencing or other Audio Visual-means. Read the official circular given below:

Corporate Laws & Corporate Governance Committee
The Institute of Chartered Accountants of India
18th January, 2021

ANNOUNCEMENT

Sub: Clarification on holding of AGM through VC (Video Conferencing) or OAVM (Other Audio Visual Means)

This is to inform you that Ministry of Corporate Affairs has issued Circular no. 02/2021 dated 13th January, 2021 wherein companies whose AGMs were:

due to be held in the year 2020, or
become due in the year 2021

ICAI Clarifies AGM Rules for VC/OAVM Meetings

are allowed to conduct their AGM on or before 31st December 2021 through Video Conferencing (VC) or Other Audio-Visual Means (OAVM) i.e. in accordance with the requirements as provided in paragraphs 3 and 4 of the General Circular No. 20/2020 dated 5th May, 2020.

Further, it has been clarified, that the circular shall not be considered as any extension of time for holding of AGMs by the companies under the Companies Act, 2013 and the companies which have not adhered to the relevant timelines shall remain subject to legal action under the Companies Act, 2013.

Circular is available at the link- http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.02_14012021.pdf

Members may note the above.

Sincerely Yours,

Chairman and Vice Chairman
Corporate Laws & Corporate Governance Committee
The Institute of Chartered Accountants of India

FAQ :

The ICAI clarification concerns the holding of Annual General Meetings (AGMs) through Video Conferencing (VC) or Other Audio Visual Means (OAVM).

Companies whose AGMs were due in 2020 or become due in 2021 are affected by this clarification.

Companies can hold their AGMs via VC or OAVM on or before 31st December 2021.

No, the circular clarifies that it is not an extension of time for holding AGMs. Companies that have not adhered to the relevant timelines may still face legal action.

The official circular can be found at http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.02_14012021.pdf

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