The Ministry of Corporate Affairs (“MCA”) vide General Circular No. 14/2020, dated April 8, 2020, has allowed companies to conduct extraordinary general meetings (“EGMs”) through video conferencing (“VC”) or other audio visual means (“OAVM”) without requiring the members to physically assemble at a common venue.
The MCA has provided the following procedure which is to be adopted by a company conducting such meetings on or before June 30, 2020:
For companies required to provide the e-voting facility under the Companies Act, 2013 (“Act”) or companies which have opted for such facility:
i) if there are less than 50 (Fifty) members present in the meeting, the chairman shall be appointed in accordance with Section 104 of the Act;
ii) in all other cases, the chairman shall be appointed by a poll conducted through e-voting system.
i) if there are less than 50 (Fifty) members present in the meeting, the voting may be conducted either by e-voting or by show of hands, unless a demand for poll is made in accordance with section 109 of the Act, in which case, the voting shall be conducted through e-voting;
ii) in all other cases, the voting shall be conducted through e-voting system.
Similar procedure has also been prescribed for companies which are not required to provide the e-voting facility under the Act, with the exception of, inter alia, specific provisions pertaining to e-voting.
Read circular here.
This update has been contributed by Aastha (Partner) and Kartik Jigyasi (Associate).
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