The Ministry of Corporate Affairs (MCA) scrapped the Rule restraining the presentation of approval of the annual financial statements, approval of the Board’s report etc. via video conferencing.
The government notified the Companies (Meetings of Board and its Powers) Amendment Rules, 2021 which seeks to amend the Companies (Meetings of Board and its Powers) Rules, 2014.
In the Companies (Meetings of Board and its Powers) Rules, 2014, rule 4 shall be omitted.
Rule 4 is in respect of matters not to be dealt with in a meeting through video conferencing or other audiovisual means namely the approval of the annual financial statements; the approval of the Board s report; the approval of the prospectus; the Audit Committee Meetings for consideration of accounts; and the approval of the matter relating to amalgamation, merger, demerger, acquisition, and takeover. But if there is a quorum in a meeting through the physical presence of Directors, any other director may participate in the above-restricted matters through video conferencing or other audiovisual means in such meetings.
The post-COVID-19 era has changed the whole scenario wherein most of the works are undertaken online, the Government after deleting Rule 4 will enable the approval of the annual financial statements; the approval of the Board s report; the approval of the prospectus; the Audit Committee Meetings for consideration of accounts; and the approval of the matter relating to amalgamation, merger, demerger, acquisition, and takeover via video conferencing or other audiovisual means.
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