prpri Permanent Removal of Restriction of BM through VC/AVM Permanent Removal of Restriction of BM through VC/AVM

Permanent Removal of Restriction of Board Meeting (BM) through Video Conferencing/ Audio Visual Means (VC/AVM)

Ministry of Corporate Affairs (MCA) has made the amendment in Companies (Meetings of Board and its Powers) Rules, 2014, vide its Notification dated June 15, 2021.

The amendment made by notification specifies deletion of the provision w.r.t. restriction on conducting board meetings through video conferencing/ other audio-visual means for selected agenda items.

Previously, under rule 4 of the Company (Meetings of Board and its Powers) Rules, 2014, there were clear restrictions on few matters not to be transacted virtually, to be done only through physical mode, mentioned below:

  • the approval of the annual financial statements;
  • the approval of the Board’s report;
  • the approval of the prospectus;
  • 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
  • the approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover

During the outbreak of Covid-19 pandemic, to remove the difficulties being faced by companies in conducting board meetings, & transacting business, MCA had granted relaxation from the above restriction in a phased manner up to June 30, 2021.

Now, post amendment vide notification dated 15th June 2021, this restriction is permanently deleted.

As of now, this information may not be available on MCA website, but the same can be found and read on the official e-gazette website.

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August 2021