MCA Allows Holding Of EGMs In Companies Through VC Or OAVM Facility

Please be informed that the Ministry of Corporate Affairs has allowed the companies to hold their Extraordinary General Meetings (EGMs) through Video Conference (VC) or Other Audio Visual Means (OAVM) along with e-Voting facility/simplified voting through registered emails, without requiring the shareholders to physically attend the meeting. The General Circular No. 14/2020 dated 08.04.2020 issued by the MCA allows listed companies or companies with 1,000 shareholders or more which are required to provide e-voting facility under the Companies Act, 2013 to conduct EGM through VC/ OAVM and e-Voting. For other companies, voting through registered emails has been put in place for easy compliance. As the meetings will be conducted over VC/ OAVM, the facility for appointment of proxies has been dispensed with and also postal ballot facility cannot be utilized by the companies as of now.

As an additional check, all companies using above option are required to maintain a recorded transcript of the entire proceedings in safe custody, and public companies are also required to host this transcript on their website for greater transparency. Further, all resolutions passed through this framework will be required to filed with the ROC within 60 days, so that such resolutions may be viewed publicly. Other safeguards have also been included in the Circular to ensure transparency, accountability and protection of interests of investors.

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