Boards of firms can now approve annual monetary statements and issues associated to mergers, amongst others, at conferences held by way of video conferencing and different audio-visual means.
Amid the coronavirus pandemic ensuing within the shift from bodily conferences to digital ones, the Ministry of Corporate Affairs (MCA) has amended guidelines pertaining to ‘meetings of board and its powers’ underneath the Companies Act, 2013.
Nangia Andersen LLP Partner Sandeep Jhunjhunwala stated the Companies Act at all times permitted conducting conferences by way of video conferencing however key issues comparable to approving the monetary statements, board’s report and prospectus required bodily conferences.
“Acknowledging the problem at all times attributable to the continued pandemic, the MCA has eradicated the listing of issues that might be carried out by way of audio-visual means.
“This step would go a long way in ensuring that the hurdles faced by companies are reduced and business can be carried on smoothly with the aid of technology,” he famous.
Earlier, the principles particularly talked about an inventory of issues that can’t be handled by an organization’s board by way of video conferencing or different audio-visual means.
Approval of the annual monetary statements, board’s report, prospectus, issues regarding amalgamation, merger, demerger, acquisition and takeover, and holding of the audit committee conferences for consideration of accounts, weren’t permitted.
With the most recent modification, the listing has been accomplished away with.
In this regard, the ministry notified the Companies (Meetings of Board and its Powers) Amendment Rules, 2021, on June 15.
According to Jhunjhunwala, allowing audio-visual means for all issues will even allow firms to fulfil compliances promptly and can thereby ease the strain on stakeholders.
