Ministry of Corporate Affairs (MCA) has, vide its Notification dated June 15, 2021, notified the amendment in Companies (Meetings of Board and its Powers) Rules, 2014.
The said amendment has been notified to delete the provision related to restriction of conducting Board Meeting through Video Conferencing/Other Audio-Visual Means for selected agenda items.
To curb the difficulties for corporates to conduct Board meetings during an outbreak of the Covid pandemic, MCA had granted relaxation from the above restriction in a phased manner up to June 30, 2021. Now the said restriction is permanently deleted.
Analysis by ICAI
To ease the difficulties faced by Companies/Corporates to conduct Board meetings during the current outbreak of the Covid-19 pandemic and in future, the Ministry of Corporate Affairs (MCA) has, vide its Notification dated June 15, 2021, has issued the Companies (Meetings of Board and its Powers) Amendment Rules, 2021.
The said amendment has omitted Rule 4 of Companies (Meetings of Board and its Powers) Rules, 2014. Accordingly, this deletes the provision related to restriction of conducting Board Meeting through Video Conferencing/Other Audio-Visual Means for selected agenda items like approval of the annual financial statements, Board’s report, approval of the prospectus etc
Earlier MCA had granted relaxation from the above restriction in a phased manner for a limited time upto June 30, 2021. With the latest notification there is no restriction on any matter to be dealt with in a board meeting through Video Conferencing (VC) or Other Audio Visual Means (OAVM).
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MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 15th June, 2021
G.S.R. 409(E).—In exercise of the powers conferred by sections 173, 177, 178 and section 186, read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Meetings of Board and its Powers) Rules, 2014, namely:—
1. (1) These rules may be called the Companies (Meetings of Board and its Powers) Amendment Rules, 2021.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Companies (Meetings of Board and its Powers) Rules, 2014, rule 4 shall be omitted.
[F.No. 1/32/2013-CL-V-Part]
K.V.R. MURTY, Jt. Secy.
Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide notification number G.S.R. 240(E), dated the 31 March, 2014 and subsequently amended as follows:-
1. G.S.R. 398(E), dated the 12th June, 2014 ;
2. G.S.R. 590(E) dated the 14th August, 2014;
3. G.S.R. 206 (E), dated the 18th March, 2015;
4. G.S.R. 971(E), dated the 14th December, 2015;
5. G.S.R. 309 (E), dated the 30th March, 2017;
6. G.S.R. 880 (E), dated the 13th July, 2017;
7. G.S.R. 429 (E), dated the 7th May, 2018;
8.G.S.R. 777 (E), dated the 11th October, 2019;
9. G.S.R. 857 (E), dated the 18th November, 2019;
10.G.S.R. 186 (E), dated the 19th March, 2020;
11. G.S.R. 395 (E), dated the 23rd June, 2020;
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