Board Meeting Can Held Through Video Conferencing for Approval of Accounts

As per the Rule 4 of Companies (Meetings of Board and its Powers) Rules, 2014, the following Matters were not be dealt with in a meeting through VC/OAVM:

• the approval of the annual financial statements;
• the approval of the Board’s report;
• the approval of the prospectus;
• the Audit Committee Meetings for 2[consideration of financial statement including consolidated financial statement if any, to be approved by the board under sub-section (1) of section 134 of the Act]; and
• the approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover.

1. During the outbreak of pandemic Covid-19, the MCA vide its Notification dated 19^th March, 2020, inserted sub-rule (2) andallowed for the period beginning from the date of the notification and ending on the 30th June, 2020, the meetings on matters referred to in rule 4 to be held through video conferencing or other audio-visual means in accordance with rule 3.

• Further, with the Notification dated 23^rd June, 2020, the MCA substituted the figures, letters and word “30th June, 2020 with 30^th September, 2020.

• Later on, The MCA further extended the ending date to 31^st December, 2020 vide Notification dated 28^th September, 2020.

• With the Fourth Amendment, the figures, letters and word “31^st December, 2020” were substituted with the figures, letters and word “30^th June, 2021” vide Notification dated 30^th December, 2020.

• Lastly, vide the Notification dated 15^th June, 2021, the MCA has completely omitted the Rule 4 of Companies (Meetings of Board and its Powers) Rules, 2014 and the companies can now deal with any matter in a Board Meeting through VC/OAVM mode.