May 06, 2020
Summary of the circular issued by MCA on 05/05/2020
1. MCA allows Companies to conduct Annual General Meetings(AGMs) for the calendar year 2020 through Video Conferencing facility due to CoVID-19 pandemic
Through this circular, MCA has permitted Companies to hold AGMs for the calendar year 2020 though electronic means. Below are the highlights of the said circular:
- Companies which intends to hold AGM through electronic mode to adhere to the framework provided in circulars 13/2020 and 17/2020 issued on 08/04/2020 and 13/04/2020 respectively, dealing with conducting of Extra ordinary General meetings and manner of issuing notices.
- Auditor’s report and other meeting related documents to be sent to the members and other entitled persons via email only.
- Information as prescribed in the said circular with respect to convening of AGM via electronic mode should be published in the newspaper, prior to sending the notice and other meeting documents to members etc.
- Companies to make adequate provisions to enable the members give their mandate for receiving dividends directly in their bank accounts through the Electronic Clearing Service (ECS) or any other means.
Companies, which are not required to provide e-Voting facility under the Companies Act, can conduct AGMs via electronic means subject to satisfying the criteria specified in the aforesaid circular.