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09-04-2020
Now, the meetings will be held through video-conferencing or other audio-visual means. Companies will be able to hold meetings for matters such as approval of financial statements, books of accounts, approval of the board’s report and approval of matters relating to mergers and restructuring. Currently, for such meetings, physical presence is mandatory.
The government on Wednesday further eased compliance norms for Indian companies as they move to pass ordinary and special resolutions amidst the lockdown to limit the spread of the Covid-19 outbreak.
The Ministry of Corporate Affairs (MCA) in a circular issued on Wednesday said that companies can take urgent decisions without convening a general meeting and ratify them through the e-voting process.
This relaxation is not applicable for decisions of ordinary course or business where any person has right to be heard.
'Unavoidable' extraordinary general meetings (EGMs) need to be held through video-conferencing (VCs) and a transcript of the proceedings would need to be maintained by the company.
"Such VCs would need to have a capacity to allow atleast 1000 members to participate," said MCA in the circular. These need to be on first come first serve basis.
This is applicable for companies which need to give an e-voting (electronic voting option). For companies not required to give e-voting facility the VC needs to have capacity of 500 members.
Members and participants need to be given opportunity to pose questions, MCA said.
Some of the important members who can be a part of EGM even if they are not the first to login includes - promoters, institutional investors, directors, key managerial personnel, auditors among others.
Members can also vote for the special resolution through show of hands during the VC, if there are less than 50 members participating in it.
Earlier the MCA on 18 March had relaxed the requirements of holding board meetings requiring physical presence of directors till 30 June. |
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