MCA extends due dates for conducting board meetings for restricted items and has issued a clarification on the passing of ordinary and special resolutions by companies

News from the Desk of Ministry of Corporate Affairs (MCA) 

MCA again extends due dates for conducting Board Meetings through Video Conference/OAVM for restricted items. The Ministry of Corporate Affairs (MCA) notified the Companies (Meetings of Board and its Powers) Fourth Amendment Rules, 2020. The government relaxed the requirement of holding Board meetings with the physical presence of directors under section 173(2) read with rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 for approval of the annual financial statements, Board’s report, etc. The meeting maybe held through video conferencing or other audio-visual means by duly ensuring compliance of Rule 3 of the Companies (Meetings of Board and its Powers) Rules, 2014 till 30th June, 2021.

The complete text of the Circular may be viewed at below link:

http://www.mca.gov.in/Ministry/pdf/FourthAmdtRules_30122020.pdf

MCA has issued a clarification on the passing of ordinary and special resolutions by companies under the Companies Act, 2013 read with rules made thereunder on account of COVID-19 and granted the Extension of time. In continuation to this Ministry's General Circulars No.14/2020 dated 8th April, 2020, No.17/2020 dated 13th April, 2020, No.22/2020 dated 15.06.2020 and No.33/2020 dated 28.09.2020. It has been decided to allow companies to conduct their EGMs through VC or OAVM or transact items through the postal ballot in accordance with the framework provided in the aforesaid Circulars up to 30th June, 2021. All other requirements provided in the said Circulars shall remain unchanged.

The complete text of the clarification may be viewed at below link:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.39_31122020.pdf

Last updated: 07/01/2021

Article contributed by:

Munesh Gaur

Senior Associate- Legal

MBG Corporate Services