3/19/2020 0:00 News & Articles
Amid the outbreak of the coronavirus (Covid-19), the government is taking various precautionary measures to promote social distancing to curb the spread of Covid-19 in India. In this regard, the Ministry of Corporate Affairs on March 18, 2020 have come out with a notice wherein it has in-principal decided to relax the requirement of holding physical Board meetings of directors for resolving on matters provided under section 173 (2) of the Companies Act, 2013 read with rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 including approval of the annual financial statements, Board’s report, approval of prospectus, the audit committee meetings for consideration of accounts, approval of matters relating to amalgamation, merger, demerger, acquisition and takeover, which otherwise are not permitted though video conferencing.
Hence, such matters can now be dealt with till June 30, 2020 via board meeting held through video conferencing by duly ensuring compliance of applicable laws. The necessary changes in the rules are yet to be notified.