MCA has allowed Companies to hold Board Meetings via Video Conference amid Coronavirus

The existing provision under Rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 prohibits certain matters including holding of Board Meetings for approval of the annual financial statements, Board’s report, etc. to be approved in a board meeting held through video conferencing or other audio-visual means. Considering the need to take precautionary measures to overcome the outbreak of the coronavirus (Covid-19), the Government has decided to relax the above said requirement of holding Board Meetings with the physical presence of directors under section 173 (2) of the Companies Act, 2013 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. Such board meetings may till 30th day of June, 2020 be held through video conferencing or other audio-visual means by adhering to the procedure for convening and conducting the Board meetings through video conferencing or other audio-visual means as mandated by Rule 3 of the said rules. The requisite amendments in the rules are expected to be notified soon. Last Updated: 19^th March 2020 This article is contributed by:  Luv Malhotra Senior Manager, Legal