In a significant boost for India Inc, the Ministry of Corporate Affairs (MCA) has extended the option for companies to hold their annual general meetings (AGMs) via video conferencing (VC) until September 30, 2025. This provision applies to companies whose AGMs are scheduled for 2024 and 2025.
Additionally, the MCA has authorized companies to conduct extraordinary general meetings (EGMs) through video conferencing or Other Audio Visual Means (OAVM), or to transact items via postal ballot, also until September 30, 2025.
The MCA’s recent circular continues the initiatives set forth in previous general circulars issued on May 5, 2020, May 5, 2022, December 28, 2022, and September 25, 2023. It emphasizes the recognition of digital platforms as effective alternatives for managing corporate affairs.
Experts have suggested that the option of video conferencing should be formalized in legislation, particularly as a viable choice for small companies. The integration of video conferencing with e-voting or simplified voting through registered emails enhances the ability of companies to hold their EGMs efficiently.
As meetings transition to VC/OAVM formats, the option to appoint proxies will be removed, although representatives of corporate entities will still be permitted to participate.
It’s important to note that this extension does not grant additional time for companies to hold their AGMs under the Companies Act of 2013. Companies failing to comply with the set timelines could face legal repercussions.
Company law experts have indicated that the new provision will be available to companies with financial years concluding on December 31, 2024, or March 31, 2025. This move is part of a broader effort to support India Inc in navigating compliance challenges that arose following the Covid-19 pandemic.
The MCA first permitted virtual EGMs on April 8, 2020, due to the pandemic, initially allowing them until June 30, 2020. Since then, the facility has been extended multiple times, with the latest extension pushing it through to September 30, 2025.
