MCA Eases Rules for Board Meetings Conducted through Virtual Mode.

Board meeting through video conferencing mca. In this regard the Companies should think positively about holding Board meetings through Video Conferencing subject to compliance with MCA rules. Now the meetings will be held through video-conferencing or other audio-visual means. These Rules came into effect from 15th June 2021.

3 Meetings of Board Through Video Conferencing or Other Audio Visual Means. Understanding this practical scenario Ministry of Company Affairs has allowed to have meetings through video conferencing without the physical presence. A Board Meeting attended by any Director whether in person or through video conferencing or other audio visual means shall be sufficient attendance for the purpose of section 1671b of the Act.

The Corporate Affairs Ministry is set to allow companies to hold board meetings dealing with matters of high importance including decisions on mergers amalgamation and takeovers through video conferencing for a period of three months in the wake of the coronavirus outbreak. In this regard the Companies should think positively about holding of Board meetings through Video Conferencing subject to compliance of MCA rules. The Ministry of Corporate Affairs vides its notification dated 15th June 2021 further amended the Companies Meetings of Board and its Powers Rules 2014 and makes rules the Companies Meetings of Board and its Powers Amendment Rules 2021.

I the approval of the annual financial statements. A company shall comply with the following procedure for convening and conducting the Board meetings through video conferencing or other audio visual means. 202020 MCA has allowed companies to hold their annual general meeting AGM and Board Meeting by Video Conferencing VC or other audio-visual means OAVM during the calendar year 2020 in view of continuing restrictions placed on movement of persons.

In the Companies Meetings of Board and its Powers Rules 2014 in rule 4 in sub-rule 2 for the figures letters and word 31 December 2020. The Ministry of Corporate Affairs MCA on Tuesday notified the extension of the relaxation for all the Board meetings to approve its financial statements through Video Conferencing VC or Other Audio-Visual Means to be conducted till September 30 2020. A senior government official said that the move was a response to representations by industry bodies and major corporates that board.

Iii the approval of the prospectus. With the latest notification there is no restriction on any matter to be dealt with in a board meeting through Video Conferencing VC or Other Audio Visual Means OAVM. The meeting may till 30th June 2021 be held through video conferencing or other audio visual means by duly ensuring compliance of Rule 3 of the Companies Meetings of Board and its Powers Rules 2014.