MCA - Green Initiatives in Corporate Governance - participation by shareholders or Directors in meetings through electronic mode
IT had been clarified by MCA that a shareholder or a director of the company may participate in meetings under the provisions of the Companies Act, 1956 through electronic mode.
It is now further clarified that:
++ It is not mandatory for companies to provide its directors, the facility to attend meetings through video conferencing.
++ In respect of shareholders meetings to be held during financial year 2011-12, video conferencing facility for shareholders is optional. Thereafter, it is mandatory for all listed companies.
++ The company is free to select Video Conferencing facility of any agency but the chairman of the meeting and Secretary of the company has to ensure that there is a proper Video Conferencing equipment/facility which enables all persons participating in that meeting to communicate concurrently with each other without an intermediary, and to participate effectively in the meeting.
MCA General Circular No. , Dated: June 6, 2011