Updated: Jul 16
Amid the widely spread coronavirus contamination and in line with the government’s measure to contain the outbreak, the Ministry of Corporate Affairs (“MCA”) has allowed companies to hold meetings of their board of directors through video conferencing till June 30, 2020.
As per a recent publication on the MCA portal, the MCA has in-principle decided to relax the requirement of holding board meetings with physical presence of directors for the following matters:
Approval of the annual financial statements;
Approval of the board’s report;
Approval of the prospectus;
Audit committee meetings for consideration of financial statement including consolidated financial statement if any, to be approved by the board; and
Approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover.
Such meetings may till June 30, 2020 be held through video conferencing or other audio visual means whereby the companies will have to duly comply with the Rules of the Companies Act, 2013 for conducting board meetings through audio-visual means (i.e. Rule 3 of the Companies (Meetings of Board and its Powers) Rules, 2014).
The government has taken many measures to contain the outbreak and advised to conduct meetings and gatherings only if it is of utmost importance. Stay safe.