In view of the difficulties faced by the stakeholders on account of threat posed by Covid-19, MCA on 05.05.2020 has come up with Circular No. 20/2020, allowing companies to conduct AGM through VC or OAVM, beneath are some FAQs on the same:
Companies providing facility of E-voting under Section 108 are:
Companies which has listed its Equity shares on recognized Stock Exchange and every company having not less than 1000 members can provide the facility of E-voting to its members.
Only those special business which are of unavoidable nature are allowed to be transacted in AGM through VC or OAVM.
Send email to the members, trustees for the debenture-holder of any debentures, and to all other persons so entitled under act.
Companies shall make payment through the Electronic Clearing Service (ECS). For shareholders, whose bank accounts are not available, company shall dispatch the dividend warrant/cheque to such shareholder by post.
Members present through VC or OAVM shall be counted for the purpose of Quorum under Section 103 of the Act.
No appointment of proxy will be allowed.
Authorized representative can be appointed on behalf of President, Governors or Body Corporate as per Section 112 and 113 of the Act.
Companies shall ensure that all other compliances relating to general meetings viz making of disclosures, inspection of related documents/registers by members, or authorizations for voting by bodies corporate, etc. are made through electronic mode.
1. Large Shareholders (shareholders holding 2% or more shareholding)
3. Institutional Investors
5. Key Managerial Personnel
6. Chairperson of Audit Committee, Nomination & Remuneration Committee, Stakeholders Relationship Committee.
The facility of joining shall be kept at least 15 minutes before the time scheduled and close till expiry of 15 minutes after schedule time.
All resolutions shall be filed with the ROC within 60 days after the meeting, clearly indicating that all the provisions provided under Act, Rules and the circular have been complied with.
About the Author
Author is Divya Goel, ACS working as Assistant Manager- Company Secretary with Neeraj Bhagat & Co. Chartered Accountants, a Chartered Accountancy firm helping foreign companies in setting up business in India and complying with various tax laws applicable to foreign companies while establishing their business in India.