Shubham Jaiswal (email@example.com)
The Ministry of Corporate Affairs (MCA) on Tuesday allowed companies to hold annual general meetings (AGMs) through video conferencing (VC) or any other audio-visual means during 2020. This follows the ministry’s decision to allow companies to conduct extra-ordinary general meeting (EGMs) through VCs.
In view of the continuing restrictions on the movement of people because of covid-19 lockdown, it has been decided that companies be allowed to conduct their AGM through video conferencing, MCA said in the notification.
However, companies would need to ensure certain checks and balances that the annual exercise of company disclosures and stakeholder consultations does not become a futile.
Firms would need to ensure that shareholders can cast their votes through the e-voting system – a settled principle under Companies Act 2013.