Govt allows board meetings via video conferencing till Sept 30

The government has given its go-ahead to companies for holding board meetings through video conference or other audio-visual means till September 30. Earlier, the Ministry of Corporate Affairs (MCA) had allowed companies to hold board meetings through video conference till June 30.

A gazette notification issued by the Ministry affairs said, “In the Companies (Meetings of Board and its Powers) Rules, 2014, in rule 4 in sub-rule (2), for the figures, letters and word '30th June, 2020', the figures, letters and word '30th September, 2020' shall be substituted.” The decision was taken after consultation with several stakeholders.

On April 8, the MCA, in the wake of the coronavirus-induced nationwide lockdown, announced that companies could hold their extraordinary general meetings under the Companies Act, through video conferencing till June 30.

Under the Centre’s guidelines post the relaxations, companies have to follow all requirements laid out under the rules for holding board meetings via video conferencing such as recording of these proceedings, ensuring availability of proper equipment among others.

These are among a slew of measures the government and regulatory bodies have taken to provide relief to the business fraternity and market participants in the wake of the pandemic.

India has been in stringent lockdown from March 25 India till end of May. Most offices allowed their employees to work from home even as the Centre initiated its “unlock” exercise. Companies also have to redraw their working style to ensure social distancing is maintained while following stringent precautionary rules including regular follow-up on sanitization and hygiene protocol. Many organizations have also decided to work in shifts to ensure that there is no overcrowding of office spaces.

The number of coronavirus cases in India has surged exponentially in the last couple of weeks. At present, the number is over 4.5 lakh with Maharashtra, Delhi and Tamil Nadu topping the list..