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AGMs through VC or OAVM facility and other regulatory relaxations

AGMs through VC or OAVM facility and other relaxations

This issue of First Notes aims to provide an overview of the recent relaxations provided by MCA and SEBI.

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Introduction

Currently, Section 96 of the Companies Act, 2013 (2013 Act) requires every company (other than a one-person company) to hold an Annual General Meeting (AGM) within a period of six months from the end of Financial Year (FY) and not later than 15 months from the date of last AGM. On the other hand, Securities Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulation, 2015 requires top 100 listed companies to hold their AGMs within a period of five months from the date of closing of the FY.

In view of COVID-19 pandemic recently, the Ministry of Corporate Affairs (MCA) and SEBI have provided various relaxations and clarifications for conducting AGM and Extraordinary General Meeting (EGM).

New development

Considering the representations received from various stakeholders and in line with the relaxations given under the EGM circulars to hold EGMs through VC or OAVM facility, MCA through its circular dated 5 May 2020 allowed companies to conduct an AGM through VC or OAVM facility.

Additionally, SEBI on 12 May 2020 also granted further relaxations and issued clarifications regarding provisions of the Listing Regulations.

This issue of First Notes aims to provide an overview of the recent relaxations provided by MCA and SEBI.

To access the text of the MCA circular, please click here.

To access the text of the SEBI notification, please click here.

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