MCA allows companies to hold Extraordinary General Meetings (EGMs) through VC or OAVM complemented with e-Voting facility/simplified voting through registered emails

Ongoing nation-wide lockdown and social distancing due to COVID 19:-

1. MCA had earlier allowed to conduct all meetings of board of directors upto 30th June 2020 through Video Conferencing (VC) or other audio visual means (OAVM) vide its notification date 19.03.2020.

2. For corporate compliances during the current lockdown period and other  restrictions on account of COVID 19, MCA has issued a circular allowing companies to hold Extraordinary General Meetings (EGMs) through VC or OAVM complemented with e-Voting facility/simplified voting through registered emails, without requiring the shareholders to physically assemble at a common venue.

3. 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, a highly simplified mechanism for voting through registered emails has been put in place for easy compliance.

4. As the meetings will be conducted over VC/ OAVM, the facility for appointment of proxies has been dispensed with, however while representatives of bodies corporate will continue to get appointed for participation in such meetings.

5. All companies using this 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. All resolutions passed through this framework will be required to filed with the RoC within 60 days. Other details are given in the General Circular No. 14/2020 dated 08.04.2020.

Regard,

Company Salahkar Team
Email- info@companysalahkar.com
Mob.- 7827515372