The government had issued a circular in May allowing companies to hold AGMs
video conferencing or other audio visual means. Indian companies are required to hold AGMs
within six months of closure of the financial year.
“MCA has clarified that blanket extension will not be granted, but each company will have to submit a request in Form GNL-1 and get their individual approval. Companies need not wait till end of September to file the request as the approval if denied would culminate into a long drawn process of compounding penalty for the companies,” Mohnish Wadhwa, founder, Wadhwa & Shah, Chartered accountants said.
Industry experts said that the prevailing disruption in logistics due to Covid-19, has brought the audit and compliance work under a lot of strain particularly for mid-size companies.
“The much-awaited move is a relief to small and mid-size corporates that would help them effectively comply without any additional penalty or non-compliance consequence,” Makarand Joshi, partner, MMJC and Associates, a corporate compliance firm.