Annual general meeting or AGM is a yearly meeting conducted by shareholders of a company where the directors' present an annual report which contains information about the performance on the strategy of the company for shareholders. Issues such as the appointment of the board of directors of the company, election of auditors, dividend payment, and executive compensation are discussed and the shareholders have voting rights to vote on these issues. Additionally, the Securities and Exchange Board of India has issued a circular[1] regarding the holding of annual general meetings by the top 100 listed entities by market capitalization on 23rd July 2021 to all listed entities that have listed their specified securities and all recognized stock exchanges. Top entities are determined based on market capitalization at the end of the previous financial year. Holding the annual general meeting is a statutory requirement for any company whether it is public or private, limited by guarantee or shares or is without or with share capital or it is an unlimited company except for one-person company. A one-person company does not need to hold an annual general meeting.

Top 100 Entities By market capitalization are to hold their annual general meeting within five months from the date of closing of the financial year as per regulation 44(5) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 (‘SEBI LODR'/ ‘LODR’). 

Security and exchange board of India stated in the circular that it is Requesting an extension of time to the top hundred listed entities for holding their annual general meeting inter-alia Due to the COVID-19 pandemic and hence it is in receipt of representation from the listed entities and the institute of company secretaries of India (ICSI).

It was stated that After consideration, it was decided to increase or extend the timeline for conducting the annual general meeting by top 100 listed entities by market capitalization however, these entities need to hold their annual general meeting within six months from the date of closing of FY 2020-21.

Section 11 subsection 1 of Securities and Exchange Board of India Act, 1992 read with Regulation 101 and Regulation 102 of the Listing Obligations and Disclosure Requirements (LODR) confer the power to issue such circulars and relaxations contained herein are subject to the provisions of Companies Act, 2013 and rules made as provided in the document. The circular will come into force on July 23rd, 2021 that is with immediate effect.

[1] SEBI/HO/CFD/CMD1/P/CIR/2021/602

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