Thursday, November 21, 2024
Home Business MCA Updates Board Meetings Attendance Rules eased

Board Meetings Attendance Rules eased

In the light of the prevailing world health crisis due to COVID-19, the Ministry of Corporate Affairs (MCA) decided to relax the requirements on holding board meetings till June 30, 2020. The ministry has issued a notification stating that any board meetings which require the physical presence of directors shall be conducted over video conferencing.

The current company rules do not allow certain affairs to be dealt with in a meeting through video conferencing or other audio-visual means. This includes the approval of the prospectus, annual financial statements, board’s report, matters relating to amalgamation, merger, demerger, acquisition, and takeover and the audit committee meetings for consideration of accounts. This new relaxation allows the directors to attend the meetings via audiovisual means even for the approval of financial statements and the board’s report.

For any other issues, the board meetings are permitted through video conferencing. A director attending a meeting through video conferencing is to be counted for the purpose of quorum. Meetings in this quarter are important as they ratify interim dividends announced by over two dozen companies.

These dividends were announced to avoid higher Dividend Distribution Tax (DDT) levied onto promoters post the new provisions in the budget in the year 2020. To ensure safeguards, the companies would have to ensure adequate documentation of meetings held through video conferencing.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Conscious Chemist’s Journey on Shark Tank India: A Dive into Entrepreneurial Resilience

Conscious Chemist, a brand under the legal entity Era Botanics Private Limited, is making waves in the beauty and personal care industry. This...

Shark Tank India Season 3: Meet the 12 Esteemed Judges

In the eagerly awaited Shark Tank India Season 3, a stellar panel of judges has been assembled, comprising some of the most accomplished individuals in the business world. Among them are prominent figures like Ritesh Aggarwal, Aman Gupta, Anupam Mittal, Namita Thapar, Vineeta Singh, and Peyush Bansal. What's particularly striking about this lineup is the youthfulness of Ritesh Aggarwal, who, despite his age, has already made a significant mark in the entrepreneurial landscape. As the show unfolds, viewers can look forward to witnessing the dynamic interactions and insightful judgments of these esteemed judges.

ProjectX Raises $204 K in Seed Funding Round with Google as Investor

Kalyani, West Bengal, India - In a major development for the technology sector, ProjectX (Rrs Projectx Cloud Technologies Private Limited), an innovative...

KPI Green Energy’s Post IPO Funding Round Raises $36 Million

KPI Green Energy, a prominent operator of renewable solar power plants, recently closed a significant funding round. The Post IPO funding round,...

Recent Comments