Indian Companies can now hold Board and General Meetings via Video Conferencing

India has introduced new guidelines for Fast Track Exit (FTE) for defunct companies seeking to get their names removed from the Register of Companies.

Laying to rest, longstanding doubts on acceptance of board meetings of Indian entities of foreign companies over telephone / Video Conference, the ministry clarified that directors of a company may participate in a meeting of Board / Committee of directors through electronic mode (Video Conference).

This move is expected to substantially simplify the compliances for corporate governance requirements relating to the board meetings.

The MCA has further clarified that shareholders of companies may also participate in a general meeting through electronic mode but are subject to certain conditions including:

• Electronic mode shall mean video conference facility i.e. audio-visual electronic communication facility
• Every director of the company must attend at least one meeting in person during the financial year of the company
• The place where the Chairman or Secretary is sitting during the Board meeting shall be taken as place of meeting, etc.

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Published: June 22, 2011. The information provided on this page is intended merely to highlight issues for general information purposes only. It is not comprehensive nor does it provide legal advice. Any information is subject to change without notice. No liability whatsoever is accepted by Nair & Co.