Topics In Demand
Notification
New

No notification found.

Blog
Submission to Ministry of Corporate Affairs requesting for further relaxation in provisions relating to conduct of physical board meetings.

September 22, 2020

439

0

COVID-19 has spread rapidly across the globe, causing significant disruption in businesses. In these unprecedented times, India has surpassed Brazil to become the second –worst-hit country by COVID-19, as infections continue to accelerate.

As per S.173 of Companies Act, 2013 (Act), participation of directors in Board Meeting may be either in person or through video conferencing or other audio visual means capable of recording and recognizing the participation of directors as well as recording and storing the proceedings of meetings. Further, as per Rule 4 of Companies (Meetings of Board and its Powers) Rules, 2014 (Rules), certain matters are not allowed to be dealt with in any meeting held through video conferencing or other audio visual.

In this regard, Ministry of Corporate Affairs (MCA) had earlier lifted restrictions on meetings conducted through video conferencing and enabling companies to conduct all the meeting proceedings through audio-visual means, for a period up to September 30, 2020.

Given the ongoing circumstance of surging infections, many countries around the world still have in place travel/visa restrictions and are taking continued taking steps to curtail international travel of people. Hence, it will not be prudent in the current circumstances for companies to have an in-person gathering of senior executives and board members at one place.

In this regard, NASSCOM made a submission to MCA requesting to extend the relief relating to conduct of physical board meetings till March 31, 2021, as the corporates are currently unable to assess the time period it will take for business to resume to normal conditions.

We will engage with MCA to get clarity on the above aspect. We will keep you posted on further developments in this regard.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


Tejasvi

© Copyright nasscom. All Rights Reserved.