Corona: Govt allows board meetings via video conferencing till June 30

By: |
Published: March 19, 2020 2:30:16 AM

“Now these meetings can be held via video conferencing or audio-visual means till June 30 by duly ensuring compliance of rule 3 of the said rules. Necessary changes in the rules are expected to be notified soon,” the source said.

With recent surge in the number of cases of COVID-19 across the globe, it would not be practical for companies to mandate physical presence of board members. (Representative image)With recent surge in the number of cases of COVID-19 across the globe, it would not be practical for companies to mandate physical presence of board members. (Representative image)

In view of the threat of contamination due to the coronavirus outbreak, the Ministry of Corporate Affairs (MCA) has allowed companies to hold meetings of their board of directors through video conferencing till June 2020.

An official source said in view of the need to take precautionary measures to check the outbreak of COVID-19, the MCA has in-principle agreed to relax the requirement of holding board meetings with physical presence of directors for approval of the annual financial statements, board’s report, etc.

“Now these meetings can be held via video conferencing or audio-visual means till June 30 by duly ensuring compliance of rule 3 of the said rules. Necessary changes in the rules are expected to be notified soon,” the source said.

Welcoming the move, Nangia Anderson’s director (regulatory) Sandeep Jhunjhunwala said listed firms generally conduct their board meetings for approval of annual financial statements and annual report during April to comply with Sebi regulations related to filing of financial results with the stock exchanges within 60 days from the end of the financial year.

Companies Act allows participation of directors in board meeting through video conferencing or other audio-visual means with exceptions to certain matters which include approval of annual financial statements, which require an in-person meeting.

“COVID-19 is interfering with the normal function of businesses around the world, including in the form of travel restrictions, quarantines, office closures, etc. With recent surge in the number of cases of COVID-19 across the globe, it would not be practical for companies to mandate physical presence of board members. Therefore, the said development was the need of the hour,” he said.

AMRG & Associates chief executive Gaurav Mohan said, “MCA has relaxed the criteria of physical presence of directors in board meetings convened till 30 June which is commendable. It may come up with additional requirements to ensure objectivity, integrity, independence and confidentiality of the said meeting in the final notification.”

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Paytm allows Vodafone Idea feature phone users to recharge using UPI
2Ola’s financial services CEO steps down even as company raises over Rs 200 crore funding
3Paytm OTP at the end of SMS notification bothering you? Its deliberate, explains Vijay Shekhar Sharma