National Chronicle
Business/Economy

MCA allows companies to hold AGMs through video conferencing

New Delhi,   The Ministry of Corporate Affairs (MCA) on Tuesday allowed companies to conduct their annual general meetings through video conferencing (VC) or other audio visual means (OAVM) during the calendar year 2020 in view ofthe coronavirus pandemic.

The MCA has already allowed the companies whose financial year ended on December 31, 2019, to hold their AGM by September 30, 2020.

“However on account of need for continuous adherence to the social distancing norms and restrictions placed on movement of persons, it has become necessary and hence it has been decided to allow companies to hold their annual general meeting (AGM) by Video Conferencing (VC) or other audio visual means (OAVM) during the calendar year 2020,” the ministry said in a statement.

It said that the framework provided in the earlier circulars for holding of extraordinary general meeting (EGM) would be applicable making necessary changes and keeping the purpose intact for conduct of AGMs during 2020, based on the classification of companies which are required to provide the facility of e-voting or have opted for the same, and those companies which are not required to provide such a facility.

Owing to the difficulties in sending physical copies of the financial statements, the circular allows the companies to send the financial statements, along with board’s reports, auditor’s reports and other documents required to be attached therewith, only through email.

The companies are also required to provide a window to the shareholders for registering their mandate for transferring dividends electronically to them through the Electronic Clearing Service (ECS) or any other means.

The measure has been taken to facilitate companies to conduct their ordinary & special business through AGMs conducted by leveraging the Digital India platforms.

This is one among the slew of relaxations provided by the government and other regulatory bodies to companies in terms of regulatory compliances.

 

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