MCA removes restrictions on board meetings via video conferencing

The Ministry of Corporate Affairs has issued a notification to allow board meetings through video conferencing for activities that were earlier restricted for the digital medium, in a move that will ease the burden on companies to hold physical meetings even beyond the pandemic. 

Some of the activities that were not allowed to be dealt with through video conferencing included the approval of the annual financial statements, Board’s report, approval of the prospectus.

Companies were not allowed to hold the audit committee meetings for consideration of accounts through video conferencing earlier. Approval of  matters relating to amalgamation, merger, demerger, acquisition and takeover also required physical meeting. 

In light of the pandemic, in March last year the government had allowed video conferencing even for restricted business but for a limited time. With the latest notification, the provision restricting video conferencing or other audio visual means has been removed permanently. 

“Government would not have to go back and forth on relaxing these requirements because of Covid. It will help overall ease of doing business,” Ankit Singhi, partner, Corporate Professionals said.