The Ministry of Corporate Affairs has issued various circulars i.e. (circulars no. 14/2020 dated 8th April 2020, 17/2020 dated 13th April 2020, 20/2020 dated 5th May, 2020 and 22/2020 dated 15th June, 2020 for the purpose of conducting Annual General Meeting (AGM) by means of Video Conferencing (VC)/Other Audio Visual Means (OAVM) on account of the threat posed by Covid-19 pandemic. We give below a summary of the above-mentioned circulars applicable to the companies which are required to provide e-voting facility under the Companies Act, 2013:
- The Companies Act, 2013 does not contain any specific provision for allowing conduct of members' meetings through video conferencing (VC) or other audio visual means (OAVM)
- Companies have been allowed to conduct their AGM through Video Conferencing (VC)/Other Audio Visual Means (OAVM) during the calendar year 2020.
- AGMs wherever unavoidable, may be held through VC or OAVM and the recorded transcript of the same shall be maintained in safe custody by the company and as soon as possible, the same shall be made available on the website (if any) of the company.
- All care must be taken to ensure that such meeting through VC or OAVM facility allows two way teleconferencing or webex for the ease of participation of the members and the participants are allowed to pose questions concurrently or given time to submit questions in advance on the e-mail address of the company. Such facility must have a capacity to allow at least 1000 members to participate on a first-come-first-served basis. The large shareholders (i.e. shareholders holding 2% or more shareholding), promoters, institutional investors, directors, key managerial personnel, the chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee, auditors, etc. may be allowed to attend the meeting without restriction on account of first-come-first-served principle.
- The facility for joining the meeting shall be kept open at least 15 minutes before the time scheduled to start the meeting and shall not be closed till the expiry of 15 minutes after such scheduled time.
- Attendance of members through VC or OAVM shall be counted for the purpose of reckoning the quorum under section 103 of the Act
- Only those members, who are present in the meeting through VC or OAVM facility and have not cast their vote on resolutions through remote e-voting and are otherwise not barred from doing so, shall be allowed to vote through e-voting system in the meeting.
- The facility of appointment of proxies by members will not be available for such meetings. However, in pursuance of section 112 and section 113 of the Act, representatives of the members may be appointed for the purpose of voting through remote e-voting or for participation and voting in the meeting held through VC or OAVM.
- At least one independent director (where the company is required to appoint one), and the auditor or his authorized representative, who is qualified to be the auditor shall attend such meeting through VC or OAVM
- The notice for the general meeting shall make disclosures with regard to the
manner in which framework provided in the Circular shall be available for use by the members and also contain clear instructions on how to access
and participate in the meeting. The company shall also provide a helpline number through the registrar & transfer agent, technology provider, or
otherwise, for those shareholders who need assistance with using the technology before or during the meeting. A copy of the meeting notice shall
also be prominently displayed on the website of the company and due
intimation may be made to the exchanges in case of a listed company.
- All resolutions passed in accordance with this mechanism shall be filed with the Registrar of Companies within 60 days of the meeting clearly indicating therein that the mechanism provided herein alongwith other provisions of the Act and rules were duly complied with during such meeting.
- The Chairman of the meeting shall satisfy himself and cause to record the same before considering the business in the meeting that all efforts feasible under the circumstances have indeed been made by the company to enable members to participate and vote on the items being considered in the meeting.
- The company would send notice by email to all its shareholders who have registered their email addresses with the company or depository participant/depository. The company would also be duty bound to provide a process of registration of e-mail addresses of members and state so in its public notice. The communication of the assent or dissent of the members would only take place through the remote e-voting system, as no meeting will be required to be called.
- In view of the prevailing situation, owing to the difficulties involved in dispatching of physical copies of the financial statements (including Board's report, Auditor's report or other documents required to be attached therewith), such statements shall be sent only by email to the members, trustees for the debenture-holder of any debentures issued by the company, and to all other persons so entitled.
- Before sending the notices and copies of the financial statements, etc., a public notice as required under rule 20(4)(v) of the Companies (Management and Administration) Rules, 2014 by way of advertisement be published at least once in a vernacular newspaper in the principal vernacular language of the district in which the registered office of the company is situated and having a wide circulation in that district, and at least once in English language in an English newspaper having a wide circulation in that district, preferably both newspapers having electronic editions, and specifying in the advertisement the following information:-
- statement that the AGM will be convened through VC or OAVM in compliance with applicable provisions of the Act read with the Circulars issued by MCA;
- the date and time of the AGM through VC or OAVM;
- availability of notice of the meeting on the website of the company and the stock exchange, in case of a listed company;
- the manner in which the members who are holding shares in physical form or who have not registered their email addresses with the company can cast their vote through remote e-voting or through the e-voting system during the meeting;
- the manner in which the persons who have not registered their email addresses with the company can get the same registered with the company;
- the manner in which the members can give their mandate for receiving dividends directly in their bank accounts through the Electronic Clearing Service (ECS) or any other means;
- any other detail considered necessary by the company.
16. In case, the company is unable to pay the dividend to any shareholder by the electronic mode, due to non-availability of the details of the bank account, the company shall upon normalization of the postal services, dispatch the dividend warrant/cheque to such shareholder by post.
17. In case, the company has received the permission from the relevant authorities to conduct its AGM at its registered office, or at any other place as provided under section 96 of the Act, after following any advisories issued from such authorities, the company may in addition to holding such meeting with physical presence of some members, also provide the facility of VC or OAVM, so as to allow other members of the company to participate in such meeting. All members who are physically present in the meeting as well as the members who attend the meeting through the facility of VC or OAVM shall be reckoned for the purpose of quorum under section 103 of the Act. All resolutions shall continue to be passed through the facility of e-voting system.
18. The companies shall ensure that all other compliances associated with the provisions relating to general meetings viz making of disclosures, inspection of related documents/registers by members, or authorizations for voting by bodies corporate, etc as provided in the Act and the articles of association of the company are made through electronic mode.
19. As per Circular dated 15th June, 2020, it has been decided to allow companies to conduct their EGMs through VC or OAVM or transact items through postal ballot in accordance with the framework provided in the aforesaid Circulars upto 30th September, 2020.
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