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Ministry of Corporate Affairs ("MCA") has issued a general circular 03 of 2025, dated 22.09.2025 concerning holding of annual general meeting ("AGM") and extraordinary general meeting ("EGM").
Accordingly to the aforesaid circular the MCA has decided as follows, until further orders:
- Companies are allowed to conduct the AGMs through audio-visual means;
- Companies are allowed to conduct the EGMs through audio-visual means; and
- Transact items through postal ballot in accordance with the framework provided in previous circulars.
Our Comments
Following outbreak of global pandemic, MCA had allowed conducting general meetings through audio-visual means since physical meetings were not possible. The facility of the conducting such meetings through audio-visual means has been extended by MCA from time to time through yearly circulars until September 2025.
Now, pursuant to aforesaid circular the facility to conduct general meetings has been extended until further order. That means companies can conduct meetings through audio-visual means until MCA revokes the said facility.
Ease of conducting the business, is always a welcome move considering large scale digitisation and availability of internet facility. However, on the other hand shareholders democracy needs to be preserved by putting safeguards to ensure their voices are heard. The MCA needs to strike a harmonious balance between shareholders democracy and allowing conduct of general meetings through audio-visual means.
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