Extension of due dates for conducting BM through VC

The Ministry of Corporate Affairs has Companies (Meetings of Board and its Powers) Fourth Amendment Rules, 2020 which relaxed the requirement of holding Board meetings with physical presence of directors.

The said amendment deals with amendment of Rule 4 which prescribes that the following matters shall only be dealt by Board Meeting other than that held through video conferencing or other audio visual means.-

• 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 vide Companies (Meetings of Board and its Powers) Amendment Rules, 2020 dated March 19, 2020, Rule 4(2) was inserted permitting board meetings to be conducted through VC and OAVM for matters which were otherwise prohibited from being conducted through VC and OAVM upto June 30, 2020 which was further extended till 31st December 2020 (Companies (Meetings of Board and its Powers) Third Amendment Rules, 2020).

Now, the Companies (Meetings of Board and its Powers) Fourth Amendment Rules, 2020 has further extended the aforementioned deadline to 30th June, 2021.

In other words, Board meetings can be conducted through VC and OAVM for matters which were otherwise prohibited from being conducted through VC and OAVM upto June 30, 2021.

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 30th December, 2020

G.S.R.(E).—In exercise of the powers conferred by sections 173, 177, 178 and section 186 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Meetings of Board and its Powers) Rules, 2014, namely:-

1. (1) These rules may be called the Companies (Meetings of Board and its Powers) Fourth Amendment Rules, 2020.  

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Meetings of Board and its Powers) Rules, 2014, in rule 4, in sub-rule (2), for the figures, letters and word “31st December, 2020”, the figures, letters and word “30th June, 2021” shall be substituted.

  Report