The Future of AGMs and Board Meetings in India
The impact of the COVID-19 pandemic has been profound. It has transformed the way business is carried out – both globally and in India. The recent amendment introduced by the Ministry of Corporate Affairs is a testament to that.
From June 2021, the Ministry has declared that board meetings can now be permanently held through videoconferencing or other audio-visual means.
According to the Amendment Rules, companies can now conduct meetings, pass resolutions and discuss the following elements of a board meeting virtually:
Remote working in the wake of the pandemic was crucial in giving the Ministry an impetus to make virtual AGMs a new norm.
Since March 2020, the Ministry had already granted a variety of relaxations, particularly for statutory compliances. Many extensions to deadlines were introduced, owning to disruptions that companies were likely to face during the pandemic. In line with this, it was also mandated that virtual board meetings could be held until December 2021.
With this step of granting leave to hold virtual board and AGM meetings for the foreseeable future, the government ensures that companies enhance their digital capabilities and adopt technology to sustain in a transformed world.