In a step to enable health safety and business continuity, Ministry of Corporate Affairs (MCA) has now permitted companies to conduct virtual Board meetings for approval of annual financial statements, Board reports etc. This relaxation has been extended till June 30, 2021 vide issue of Notification No. GSR 806(E) dated December 30, 2020 (attached).
Given the ongoing circumstance of surging COVID-19 infections, many countries around the world still have in place travel/visa restrictions and are taking continued taking steps to curtail international travel of people. In this regard, NASSCOM made a representation to MCA requesting them to provide further relaxation in provisions relating to conduct of physical board meeting by companies. Our representation to MCA is available here.
The relaxation is important as the corporates are currently unable to assess the time period it will take for business to resume to normal conditions. This will provide the much-needed relief to companies, while safeguarding health of individuals and ensuring compliance with statutory provisions.
We hope you will find the update useful.