LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Agm attendance

praveen (Expert) (350 Points)

25 November 2016

can director present through video conference for an AGM..

Reply
Follow
Share

7 Replies

Aarthi (Analyst) (252 Points)
Replied 25 November 2016

I think so, Company Rules permit the same. Anyways let me double check before confirming to you.

CA VIRAL SANGHVI (Finance head) (681 Points)
Replied 26 November 2016

Yes, The companies Act permits the director to attend the meeting by video conference.

Aarthi (Analyst) (252 Points)
Replied 26 November 2016

Thanks Viral for the confirmation

praveen (Expert) (350 Points)
Replied 27 November 2016

director can attend through video conference for board meeting
it's clear but what about for Annual General Meeting

CA VIRAL SANGHVI (Finance head) (681 Points)
Replied 28 November 2016

Yes, Director can participate with the help of video conference in AGM also.

praveen (Expert) (350 Points)
Replied 04 December 2016

regarding this can you please share the evidence through section...

Saket Agarwal (Chartered Accountant) (274 Points)
Replied 04 December 2016

Rule 4 of Companies (Meetings of Board and its Powers) Rules, 2014 lists the matters which can not be dealt via audio visual means. This is the list applicable to Board Meetings (and not general meetings). Matters (i) and (ii) make it clear that directors can not decide on " the approval of the annual financial statements" and " the approval of the Board's report" via audio visual means in a board meeting.

Section 108 gives power to Cetral Government to prescribe the class or classes of companies and manner in which a member may exercise his right to vote by the electronic means. Accordingly Rule 20(2) of Companies (Management and Administration) Rules, 2014 lists cases in which resolutions may be passed via electronic means - "Every company which has listed its equity shares on a recognised stock exchange and every company having not less than one thousand members shall provide to its members facility to exercise their right to vote on resolutions proposed to be considered at a general meeting by electronic means "

Hence, an AGM can be conducted via electronic means as an AGM is a general meeting too (Section 96). Requirements of Rule 20 will have to be followed though.