MCA amends board meeting rules to permanently allow virtual resolutions on financial statements, restructuring

The corporate affairs ministry has amended its board meeting rules to permanently allow resolutions on matters such as approval of financial statements and matters relating to mergers and acquisitions through videoconferencing or other audiovisual means.

ET had first reported in January on the government’s intention to make certain pandemic-induced relaxations permanent such as allowing virtual annual general meetings (AGMs) and permitting virtual board meetings on such matters.

In a notification on Wednesday, the ministry omitted a section of the rules that restricted company boards from conducting virtual meetings to approve board reports, restructuring, prospectuses or audit committee meetings for considerations of accounts via videoconferencing or other audiovisual means.

A government official had earlier said that since working remotely was the new normal, the ministry would consider including such virtual meetings as part of normal procedure.

Since March last year, the ministry has granted multiple relaxations regarding statutory compliances to companies in light of the disruptions caused by the pandemic, along with several extensions to various deadlines.

In January, the ministry had permitted firms to hold AGMs via videoconferencing or other audiovisual means till December 31 this year, subject to existing deadlines.