BOARD MEETINGS – BUSINESS CONTINUITY THROUGH VIDEO CONFERENCING – Eshwars
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BOARD MEETINGS – BUSINESS CONTINUITY THROUGH VIDEO CONFERENCING

Business continuity is essential even in these extra-ordinary times of Covid-19. To keep off the pandemic the essential requirement is social distancing.  To enable social distancing and still at the same time ensure continuation of business, the Ministry of Corporate Affairs (MCA) has waived the requirement of physical presence of directors in the board meeting, in respect of matters which required the quorum (minimum number of directors to constitute a valid meeting) to be present in one place.

BOARD MEETING AND QUORUM REQUIREMENT:  Vide notification dated 19th March 2020, MCA has permitted items of business that hitherto required presence of quorum of the board/committee at one place, viz:

  • approval of the annual financial statements;
  • approval of the board’s report;
  • approval of the prospectus;
  • audit committee meetings for consideration of financial statement including consolidated financial statement, if any, to be approved by the board.
  • approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover.

PERIOD TILL WHEN RELAXATION IS AVAILABLE: 19th March 2020 to 30th June 2020. With this notification, all the business items can be transacted through video conference, without any restriction.

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