A massive relief for companies as ROC due date extended for AGM of FY 2020-21. This latest MCA announcement comes in response to requests made by several companies and other stakeholders. The companies across the nation were requesting an extension of time for the conduct of the FY21 AGM due to covid. Furthermore, The representations were made by both corporations and the audit professionals as they were experiencing problems due to the second wave of Covid and the following lockdowns. In this article, we will understand the latest notification by MCA(Ministry of Corporate Affairs) regarding the due date extension for AGM of FY 2020-21.
What is the Annual General Meeting (AGM)?
- As the name suggests, The Annual General Meeting (AGM) is a meeting held by every Private Limited Company or Limited Company once a year to allow shareholders to meet directors and management.
- AGM is one of the mandatory and important compliance under Private Limited Company Compliances.
- The audited accounts of the Company are authorized at the Annual General Meeting, and the appointment of auditors and Directors is also completed at AGM.
- Compensation for officials, confirmation of planned dividends, and any other matter presented by shareholders can also be determined during an AGM.
- It is mandatory for companies to conduct an annual general meeting 6 months from the close of every fiscal year. Thus, the deadline to conduct AGM is usually 30th September of every year.
ROC Due date extended for AGM of FY 21 – Company Annual Compliances
In regard to the fiscal year 2020-21, which concluded on 31 March 2021, ROC of different states has extended the Due Date for Holding AGMs by Companies for 2 months. Henceforth, companies [other than One Person Company] for the financial year 20-21 can hold the AGM till 30th November 2021 and do ROC compliances without penalties and late fees.
It is further noted that the companies no need to file Form GNL-1 for the extension of AGM.
“Important Note: Extension of AGM Due Date Relaxation is not for One Person Company.”
Refer and read the orders issued by State’s ROC at – Extension of AGM
Also, It is important to note that AGMs can be held using VC/OAVM upto 31st December 2021, as per the MCA Notification GeneralCircularNo.02_14012021.pdf dt. 13/01/2021 on Holding of AGMs due in 2020 and 2021 upto 31/12/2021, in view of Covid Pandemic.
Benefits of Due date extended for AGM of FY 2020- 21
- Companies that have not yet conducted their AGMs will benefit from the due date extension of AGM. They are also receiving more time to file their annual accounts and annual reports with the ROCs, as the due dates for these are connected to the date of the AGM.
- Companies get time to prepare and finalize their financial statements.
- Due date of ROC return filing and compliances also extended automatically such as AOC-4, MGT-7, ADT-1, etc
- The due date extension of AGM will also help companies in the normalization of Bookkeeping and Accounting as these were hampered offline due to the lockdown.
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