MCA allows companies to hold EGMs through video conferencing or other audio visual means
The ministry of corporate affairs (MCA) has allowed companies to hold extra general meetings (EGMs) through video conferencing (VC) or other audio visual means (OAVM) and allowed e-voting on business resolutions or via the shareholder’s registered email.
Noting the difficulties involved in physical meetings due to Covid-19 and the lockdown, the MCA released a circular on Wednesday stating that listed companies must make remote e-voting facilities available to shareholders for EGMs necessitated till June 30.
The notice clarified that companies that are not required to provide e-voting as per the Companies Act, 2013, must enable shareholders to vote on business resolutions through their registered email.
ET had reported that the ministry would be taking such a decision in light of the impact of Covid-19 on March 18. On the next day, the MCA allowed meetings of the board of directors through VC or OAVM where their physical presence was required.
Since then the ministry has taken a slew of measures to ensure that companies were not unduly burdened by statutory filing requirements as per the Companies Act. It also waived the late filing and additional fees in a bid to improve compliance for companies that were regular defaulters of such filings.
To maintain greater transparency of such EGMs, the ministry mandated that if this option was availed, the proceedings must be made available on the company’s website for public companies, while others are required to maintain the transcripts of proceedings in safe custody.
Additionally, the circular mentioned that all resolutions passed through this framework should be filed with the Registrar of Companies within 60 days of their passing so they may be viewed publicly.
As these meetings will be held through VC or OAVM, the ministry has done away with the facility for appointment of proxies, while representatives of bodies corporate will continue to get appointed for participation in such meetings.