Virtual Meetings in the time of Covid-19

No one ever imagined that they would have to sit inside their respective homes and work from their only instead of going out and living there 9-5 jobs. Just as the companies were about to enter the new financial year of 2020-2021 the entire nation was in lockdown stuck in their respective places and states unable to visit the offices of the companies. In such situations the need to make use of the provisions of act which are made for such crisis only. One of such provision is Section 173(2) of Companies Act, 2013 read with Rule 3 of the Companies (Meetings of Board and its Powers) Rules, 2014, which states that participation of directors in a meeting of the Board may be either in person or through video conferencing or other audio visual means as may be prescribed, which are capable of recording and recognizing the participation of the directors and of recording and storing the proceedings of such meetings along with date and time.

The major sufferer in this situation is the business which is on halt, some serious and important decisions had to be taken which are taken in the AGM. The ministry has also given a nod to conduct virtual meeting and to carry forward the business as placed.  But still a node isn’t given to the shareholders meeting which also plays a very important role in the working of the company. In situations like this it is important to come up with appropriate changes and discussion and declarations. The provision in the act is only for director’s virtual presence and thus it creates ambiguities for its application in unprecendented situations.