The Ministry of Corporate affairs have come up with a General Circular No. 09/2023 issued on 25th September, 2023 clarifying that AGM’s can be conducted via Video Conference (VC).
The General circular (No. 09/2023) issued by the Ministry of Corporate Affairs on 25th September, 2023, provides clarification on the holding of Annual General Meetings (AGMs) and Extraordinary General Meetings (EGMs) through video conferencing (VC) or other audio-visual means (OAVM). The circular states that companies whose AGMs are due in 2023 or 2024 can conduct their meetings through VC or OAVM until September 30, 2024, following the requirements mentioned in a previous circular (No. 20/2020).
However, the circular further clarifies that the circular by no means extends the statutory time for holding AGMs, and companies failing to adhere to the relevant timelines may face legal action. The circular also allows companies to conduct EGMs through VC or OAVM and transact items through postal ballot until September 30, 2024, following the framework provided in previous circulars (No. 14/2020, No. 03/2022, and No. 11/2022).
“This is a good move on the part of Ministry of Corporate Affairs that would help and facilitate the companies to hold their AGM in a smooth and organised manner.”
— Minoti Prabhu
