A much-needed relief by the Ministry of Corporate Affairs (MCA) to conduct the Extra Ordinary General Meetings (EGM) through Video Conference (VC) or Other Audio-Visual Means (OAVM) in accordance with the framework provided till 31st December 2021.
A. Background
The Ministry of Corporate Affairs had earlier provided relaxations for conducting EGM through Video Conference (VC) or Other Audio-Visual Means (OAVM) on account of COVID-19. The MCA had issued the First General Circular no. 14/2020 dated 8th April 2020 for providing relaxation wherein the companies were allowed to conduct Extra-Ordinary General Meeting (EGM) for passing ordinary and special resolutions requiring approval of members through VC or OAVM considering the COVID 19 outbreak situation.
In furtherance to the above circular, the Second General Circular no. 17/2020 was issued on 13th April 2020 clarifying the framework for conducting the EGM through VC or OAVM.
B. Relaxation
Now, it has been allowed to all the companies to conduct EGM’s through VC or OAVM or transact items through postal in accordance with the framework provided till 31st December 2021 vide the General Circular No. 10/2021 dated 23rd June 2021.
MCA had already allowed the companies to conduct the Annual General Meeting (AGM) through VC or OAVM till 31st December 2021 vide circular dated 13th January 2021.
C. Frequently Asked Questions (FAQs)
1. Is the Facility of conducting EGM through VC or OAVM is available for all companies?
Yes, all companies whether Listed, Private, Public or Small Companies are allowed to provide facility of VC or OAVM for conducting their EGM.
2. Are companies allowed to conduct Annual General Meeting through VC or OAVM?
Yes, the Companies are allowed to conduct Annual General Meeting (AGM) through VC or OAVM facility.
3. Is it necessary to maintain the recorded transcript of the General Meeting held through VC or OAVM facility?
Yes, it is necessary to keep the recorded transcript in the safe custody of the Company.
4. What is the time period allowed by MCA to conduct the EGM / AGM through VC or OAVM?
As per the recent circulars, the Companies can conduct their EGM / AGM through VC or OAVM till 31st December 2021.
The article has been contributed by:
Executive Secretarial
Further, we shall be happy to assist in case of any clarifications. For a deeper discussion, feel free to revert us at services@knmindia.com
Disclaimer: Information in this note is intended to provide only a general update of the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication.
