Govt allows companies to hold AGMs through Video Conferencing or OAVM

Govt permits firms to carry AGMs via Video Conferencing or OAVM | Corporations Information

New Delhi: The Ministry of Company Affairs (MCA) on Tuesday allowed firms to carry their annual common assembly (AGM) by Video Conferencing (VC) or different audio visible means (OAVM) through the calendar 12 months 2020 amidst the COVID-19 disaster.

“On account of want for steady adherence to the social distancing norms and restrictions positioned on motion of individuals, it has turn out to be obligatory and therefore it has been determined to permit firms to carry their annual common assembly (AGM) by Video Conferencing (VC) or different audio visible means (OAVM) through the calendar 12 months 2020,” the ministry stated in an official launch.

The MCA had final month allowed the businesses whose monetary 12 months ended on 31st December, 2019, to carry their AGM by 30th September, 2020.

The framework offered within the earlier Circulars for holding of extraordinary common assembly (EGM) could be relevant mutatis mutandis for conduct of AGMs throughout 2020, based mostly on the classification of firms that are required to: 
(i) present the power of e-voting or have opted for a similar, and 

(ii) these firms which aren’t required to supply such a facility.

Owing to the difficulties in sending bodily copies of the monetary statements, the Round permits the businesses to ship the monetary statements, together with Board’s stories, Auditor’s stories and different paperwork required to be connected therewith, solely via e mail. 

The businesses are additionally required to supply a window to the shareholders for registering their mandate for transferring dividends electronically to them via the Digital Clearing Service (ECS) or every other means.

Corporations are required to carry their AGMs inside six months from the top of a monetary 12 months whereas these firms who’re conducting their first AGM, have 9 months’ time from the top of a monetary 12 months.

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