In what is seen as a relief for India Inc that is faced with pandemic-induced compliance hardships, the Corporate Affairs Ministry (MCA) has allowed companies to hold their Annual General Meetings (AGMs) through video conferencing mode for six more months. As against earlier set outer limit of end June 2022, the MCA has now clarified that companies whose AGMs are due in the year 2022 can now conduct such meetings through video conferencing or other Audio-Visual Means (OAVMs) till December 31. A circular to this effect has now been issued by MCA.
Against this backdrop, Manendra Singh, Associate Partner, Economic Laws Practice (ELP) has been quoted by BusinessLine in their article titled ‘MCA extends virtual AGM facility till December.’ He says, “Allowing companies to conduct shareholders’ meetings virtually was initially seen as a forced measure to address challenges due to the pandemic. The regulator, however, seems confident to allow this on a regular basis. The relaxations to hold EGM and AGM by virtual/hybrid means have kept getting extended – and this time till December 31, 2022. Recently, the Company Law Committee report of March 2022, has also recommended that these should be made permanent considering the practices in other jurisdictions. A carefully drafted procedure is all that is needed to ensure that such meetings are in line with the best corporate governance practices.”
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