The Ministry of Corporate Affairs (MCA), on Monday, issued the clarification regarding extension of time till September 30, 2020, on the passing of ordinary and special resolutions under Companies Act read with rules made thereunder on account of COVID-19.
Earlier the MCA issued a general circular dated April 8, 2020, so as to provide clarifications on passing of ordinary and special resolutions by companies by holding Extraordinary General Meeting (EGM) through video conferencing (VC) or other audiovisual means (OAVM) or the passing of certain items only through postal ballot without convening the general meeting.
The earlier issued circular allows the companies to hold EGMs or transact relevant business through postal ballots as per the procedure specified therein, up to June 30, 2020, or till further orders whichever is earlier.
“Requests have been received from the stakeholders for extending the period up to which the framework provided in the aforesaid circulars may be utilized by the companies,” the circular said.
“The matter has been examined and it has been decided to allow companies to conduct their EGMs through VC or OAVM or transact items through the postal ballot in accordance with the framework provided in the aforesaid Circulars up to September 30, 2020. All other requirements provided in the said Circulars remain unchanged,” the circular said.
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