Ministry of Corporate Affairs (MCA) has issued a notice on dated 18.03.2020 to give relaxation in holding of board meeting with physical presence of director. After relaxation, now companies can held board meetings through video conferencing or other audio visual means. This step is taken as a precautionary measure to overcome the outbreak of corona virus. The necessary changes in the rules in this regard will be notified by MCA shortly.
Below is the complete text of the notice issue by MCA:-
Reg: Board meetings under the Companies Act, 2013: Considering the need to take precautionary steps to overcome the outbreak of the coronavirus (Covid-19), the Government has in-principle decided to relax the requirement of holding Board meetings with physical presence of directors under section 173 (2) r/w 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 meetings may till 30th June, 2020 be held through video conferencing or other audio visual means by duly ensuring compliance of rule 3 of the said rules. The necessary changes in the rules in this regard are expected to be notified soon.