Holding meetings using Video Conferencing (VC) or Other Audio Visual Means (OAVM) has been sanctioned by the government considering the current COVID-19 pandemic. Adding to this decision, the government has also announced that shareholders can vote through remote e-voting systems.
The Ministry of Corporate Affairs (MCA) has now permitted those members who were holding shares in physical form and who have not registered their mail ID with the company to cast votes through a remote e-voting system in the Extraordinary General Meetings (EGM). The MCA conveyed, through a circular, that the companies will have to announce through a public notice how the shareholders can vote and take part in the meeting.
Prior to this announcement, the MCA had allowed the Board of Directors to hold meetings through Video Conferencing (VC) or Other Audio Visual Means (OAVM) up to June 30, 2020. This includes meetings where the physical presence of directors is required. This was done in an effort to ease compliance during the nationwide lockdown and to maintain social-distancing.
In the present crisis situation caused by the coronavirus scare, Finance Minister Nirmala Sitharaman announced a string of measures to give relief to companies. The measures include extension of many compliance and tax deadlines up to June 30, 2020. One of the major decisions taken by the government was to raise the threshold limit to file any action under IBC from Rs 1 lakh to Rs 1 crore. This came as a huge relief to many MSME and small businesses that operate at the lower spectrum of the economic value chain and are facing grim situations in this current lockdown.
The MCA said that these clarifications are expected to greatly facilitate the conduct of business by companies during these extraordinary times. For more information on updated rules and regulations and to get your compliances done on time, visit us at Company Wizard.
