The Ministry of Corporate Affairs has issued Notifications dated June 23, 2020 notifying (i) Companies (Meetings of Board and its Powers) Second Amendment Rules, 2020; and (ii) Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2020, prescribed under the Companies Act, 2013.
The key amendments are as follows:
1. Companies (Meetings of Board and its Powers) Second Amendment Rules, 2020
Rule 4(2):
The time frame to conduct board meetings through Video Conferencing (“VC”) or Other Audio Visual Means (“OAVM”) for matters not permitted in a meeting through VC or OAVM listed under Rule 4(1), has been extended up to September 30, 2020.
Earlier vide Companies (Meetings of Board and its Powers) Amendment Rules, 2020 dated March 19, 2020, Rule 4(2) was inserted permitting board meetings to be conducted through VC and OAVM for matters which were otherwise prohibited from being conducted through VC and OAVM upto June 30, 2020.
A copy of the aforesaid amendment can be accessed here.
2. Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2020
Rule 6(1)(a)
The time limit for Independent Directors appointed in a company to apply online to the institute for inclusion of his name in the data bank, has been extended to 10 (ten) months from the date of commencement of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019 (earlier the time period was 7(seven) months).
A copy of the aforesaid amendment can be assessed here.
This update has been contributed by Arka Majumdar (Partner) Juhi Wadhwani and Kiran Sharma (Associates).
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