Clarification on AGM, EGM, and Resolutions via VC/OAVM Under Companies Act, 2013

Monisha Chaudhary

30 Mar, 2024

The clarification has been issued in continuation to the Ministry’s General Circular No. 20/2020 dated 05.05.2020, general Circular No. 02/2022 dated 05.05.2023, and General Circular No. 10/2022 dated 28.12.2022. After a thorough examination, the Ministry decided to permit companies whose AGMs are due in the year 2023 or 2024 to conduct their AGMs through VC or OAVM on or before 30 September 2024, as per the requirements prescribed in Para 3 and 4 of the General Circular No. 20/2020 dated 05.05.2020.

It has been further clarified that the General Circular shall not be considered as conferring any extension of statutory time for conducting AGMs by companies under the Companies Act, 2013, and the companies which have not stuck to the relevant statutory timelines shall be liable to legal action under the appropriate provision of the Act.

Further, it has been decided to allow companies to conduct their EGMs through Video Conference or OAVM or transact items through postal ballot as per the framework provided in the General Circular No. 14/2020 dated 08.04.2020, General Circular No. 03/2022 dated 05.05.2022 and General Circular No. 11/2022 dated 28.12.2022. It shall be applicable up to 30 September 2024. The rest of the requirements provided in the said Circular shall remain unchanged. This circular has been issued after the approval of the competent authority.