MCA Allows Companies to Convene Their Shareholders Meetings in a Virtual Mode Till 31st Dec 2022 [Tanu Agarwal]

Since the eruption of COVID-19, MCA has been constantly realizing the compliance hardships and has been generous to offer various relaxations to the Indian Companies.  Yet another relief that has come is the extension of the timeline for holding the Shareholder's meetings via virtual mode by six more months i.e. up to 31st December 2022, which otherwise would have come to an end on June 30, 2022.

Now, the Companies desirous of holding either their AGM’s or EGM’s up to 31st December 2022 can adopt any of the following modes:

  1. Virtual Mode

  2. Physical Mode

  3. Hybrid Mode.

However, this relaxation should not be interpreted to mean that the AGM dates have been extended. The AGMs or EGMs are scheduled to be convened at their respective due dates only. It is just an extension of the provision in the mode of conducting such meetings in a virtual manner up to 31st December 2022.

Ever since this facility had been introduced by the MCA as a relief to a pandemic induced compliance hardships, the Corporates have been voicing in favor of it, and recently, the Corporate Law Committee has also recommended to the Ministry, to be permanently introduced in the Companies Act, eyeing the substantial benefits it envisages like huge cost reductions in terms of holding, ease of conducting and attending, to name a few. However, the Committee has suggested to the Ministry to come up with a framework of rules and regulations and procedures to be followed by Corporates to prevent any manhandling and nuisances that may creep in.  

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