June 26, 2021 5:52:33 am
Companies will be able to continue holding extraordinary general meetings (EGMs) and take key decisions via video conferencing (VC) till December 31, according to a notification issued by the Ministry of Corporate Affairs (MCA).
The government had in April last year permitted companies to hold EGMs through VC or other audio visual means in light of the Covid-19 pandemic while also requiring that such meetings follow prescribed guidelines aimed at ensuring transparency and protecting the rights of shareholders.
Experts noted that the move to extend this right would help allow companies to make important decisions quickly as companies continue to deal with the impact of the Covid-19 pandemic.
“The amendment by the MCA is a welcome move in line with the changing times and needs of businesses and professionals. This is one more step towards ease of doing business in India and will help in removing administrative bottlenecks and result in swift decision making by companies and their boards,” said Khazat Kotwal, partner, Deloitte India.
Companies opting to hold EGMs through VCs or other audio visual means are required to maintain recorded transcripts of proceedings in such meetings with public companies, and, additionally being required to host such transcripts on their websites.
Companies are also required to file any resolutions passed in such meetings before the Registrar of Companies within 60 days.
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