The Ministry of Corporate Affairs vide its notification dated 15th June, 2021 further amended the Companies (Meetings of Board and its Powers) Rules, 2014 and makes rules, the Companies (Meetings of Board and its Powers) Amendment Rules, 2021.
This governing step of ministry ensures the businesses, to carry on their important matters to be dealt with the aid of technology and reduces the hurdles faced by an entity in a long way.
Through this amendment, rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 has been omitted which deals with restriction of conducting Board Meeting through Video Conferencing/Other Audio-Visual Means for selected agenda items.
In Rule 4 there are those matters not to be dealt with in a meeting through video conferencing or other audio-visual means-
(i) the approval of the annual financial statements;
(ii ) the approval of the Board’s report;
(iii) the approval of the prospectus;
(iv) the Audit Committee Meetings for consideration of financial statement including consolidated financial statement, if any, to be approved by the Board under sub-section (1) of Section 134 of the Act; and
(v) the approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover.
Due to the COVID pandemic, MCA granted relaxation for conduction meeting through VC till 30th June 2021, which now permanently allows virtual resolutions on matters referred in rule 4.
Boards of Directors of the Companies can now approve annual financial statements, Board’s report, Prospectus and matters related to mergers, amalgamations, at meetings held through video conferencing
and other audio-visual means. No physical presence of director is required more.
“Tough times don’t last. Tough people do” – Robert H. Schuller
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