Ministry of Corporate Affairs,
Government of India, has issued circular vide no 14/2020 on 08th
April, 2020 for clarification on passing of ordinary and special resolutions by companies
under the Companies Act, 2013 and rules made thereunder on account of the threat
posed by Covid-19.
As we all are aware that the act
doesn’t contain any specific provision for allowing conduct of member’s
meetings through video conferencing (VC) or other audio-visual means (OAVM).
Many of the stakeholders approached to the Ministry to provide clarification
on how to pass ordinary and special resolutions of urgent nature, The Ministry
has considered request of the stakeholders and provide the following clarifications:
- To pass resolutions of urgent nature through postal ballot or e-voting without holding a general meeting.
- Where extraordinary general meeting is unavoidable, then to hold EGM on or before 30.06.2020 through VC or OAVM:
A. For Companies which are required to provide the
facility of e-voting under the Act, or any other company which has opted for
such facility.
B. For companies which are not required to provide
the facility of e-voting under the Act.
CONDITIONS LAID BY THE CIRCULAR TO PASS RESOLUTION THROUGH POSTAL BALLOT OR E-VOTING OR TO HOLD EGM THROUGH VC OR OAVM:
1. TO PASS RESOLUTIONS OF URGENT NATURE THROUGH POSTAL BALLOT OR E-VOTING WITHOUT
HOLDING A GENERAL MEETING:
i. Pass resolutions of urgent nature
requiring the approval of members through mechanism of postal ballot or e-voting.
ii. Other provisions of the Companies Act, 2013 and
rules made thereunder should also be complied with.
Exclusions:
Ordinary Business or Business where any person has a right to be heard, can not be
passed through postal ballot or e-voting with out holding a general meeting,
which requires physical presence of members at a common venue.
2. WHERE EXTRAORDINARY GENERAL MEETING IS UNAVOIDABLE, THEN TO HOLD EGM ON OR BEFORE 30.06.2020 THROUGH VIDEO CONFERENCING OR OTHER AUDIO-VISUAL MEANS BY FOLLOWING THE BELOW MENTIONED PROCEDURE:
S.No.
|
Particulars
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For Companies which are required to provide
the facility of e-voting under the Act, or any other company which has opted
for such facility.
|
For companies which are not required to
provide the facility of e-voting under the Act.
|
1.
|
EGM Mode
|
Through Video Conferencing (VC) or Other Audio-Visual
Means (OAVM)
|
Through Video Conferencing (VC) or Other Audio-Visual
Means (OAVM)
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2.
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Persons in different time zones
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Convenience of different persons positioned in
different time zones shall be kept in mind before scheduling the meeting.
|
Convenience of different persons positioned in
different time zones shall be kept in mind before scheduling the meeting.
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3.
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Recording of EGM
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To be kept safe by the company &
Public Company shall made available on it’s website, if any, asap. |
To be kept safe by the company &
Public Company shall made available on it’s website, if any, asap. |
4.
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Two Way Teleconferencing or webex
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Participants should be allowed to pose questions concurrently
or given time to submit questions in advance on email of the Company.
|
Participants should be allowed to pose questions concurrently
or given time to submit questions in advance on email of the Company.
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5.
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Capacity of VC or OAVM facility
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Facility must allow at least 1000 members to
participate on first come first-serve basis.
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Facility must allow at least 500 members or members
equal to the total number of members of the company, which ever is lower, to
participate on first come first-serve basis.
|
6.
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Participation may be allowed without
restriction on account of first come-first serve basis
|
i. Large Shareholders (shareholding 2% or more),
ii.
promoters, institutional investors, directors,
key managerial personnel,
iii. the
chairpersons of the Audit Committee, Nomination and Remuneration Committee and
Stakeholders Relationship Committee, auditors etc
|
i. Large Shareholders (shareholding 2% or more),
ii. promoters,
institutional investors, directors, key managerial personnel,
iii. the
chairpersons of the Audit Committee, Nomination and Remuneration Committee and
Stakeholders Relationship Committee, auditors etc
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7.
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Facility window to join the meeting
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Facility window shall be kept open for at least
15 minutes before scheduled time.
&
shall not be closed till the expiry of 15 minutes
after scheduled time.
|
Facility window shall be kept open for at least
15 minutes before scheduled time.
&
shall not be closed till the expiry of 15 minutes
after scheduled time.
|
8.
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E-voting system
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Facility of remote e-voting shall be provided in
accordance with the Act and the rules, before the actual date of the meeting.
|
NA
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9.
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If vote have not casted through remote e-voting
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Members who are present in the meeting through VC
or OAVM and have not casted their vote through remote e-voting and not barred
otherwise, shall be allowed to vote through e-voting or by show of hands in
the meeting.
|
NA
|
10.
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Attendance of Members
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shall be counted for ascertaining quorum under section
103 of the Act.
|
shall be counted for ascertaining quorum under section
103 of the Act.
|
11.
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Chairman of the Meeting
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Chairman shall be appointed in following manner
unless the articles of the company require any specific person to be
appointed as chairman:
a. If members present at meeting, less than 50,
then shall be appointed in accordance with Section 104 of the Act
b. In all other cases, shall be appointed by a
poll through e-voting during the meeting.
Chairman shall ensure that the facility of
e-voting system is available for the purpose of conducting a poll during the
meeting held through VC or OAVM.
|
Chairman shall be appointed in following manner
unless the articles of the company require any specific person to be
appointed as chairman:
a. If members present at meeting, less than 50,
then shall be appointed in accordance with Section 104 of the Act
b. In all other cases, shall be appointed by a
poll through sending emails from registered email ids to the designated email
id circulated by the company in advance.
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12.
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Manner of Voting
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a. If Members present are less than 50 at the
meeting, then either by e-voting or by show of hands.
b. Through e-voting only, in case poll is asked
or in any other cases.
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a. If Members present are less than 50 at the
meeting by show of hands.
b. If poll is asked on any item, then members
shall send email from their registered email ids on the designated email id
of the company.
The Company shall provide a designated email id
duly safeguarded to all members at the time of sending notice of the meeting.
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13.
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Counting of Votes
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NA
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If counting of votes requires time, the said
meeting may be adjourned and called later to declare the result.
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14.
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Proxy
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Since meeting is to held through VC or OAVM, facility
for appointment of proxies will not be available for such meetings.
However in pursuance of section 112 and 113 of
the Act, representatives of the members may be appointed for remote e-voting
or for participation and voting in the meeting held through VC or OAVM.
|
Since meeting is to held through VC or OAVM, facility
for appointment of proxies will not be available for meetings.
However in pursuance of section 112 and 113 of
the Act, representatives of the members may be appointed for remote e-voting
or for participation and voting in the meeting held through VC or OAVM.
|
15.
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Mandatory Participations
|
At least one Independent Director (if required to
be appointed) and
Auditor or his authorized representative, who is qualified
to be auditor shall attend meeting through VC or OAVM.
|
At least one Independent Director (if required to
be appointed) and
Auditor or his authorized representative, who is qualified
to be auditor shall attend meeting through VC or OAVM.
|
16,
|
Participation of Institutional Investors, if members
of the company
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Should be encouraged to attend and vote in such
meeting.
|
Should be encouraged to attend and vote in such
meeting.
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17.
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Notice of General Meeting
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Notice of meeting shall contain:
1. Disclosures with regard to the manner provided
in the circular
2. How to access and participate in the meeting
Notice of meeting should be displayed on website of the company, and should
be intimated to stock exchanges in case of listed company.
|
Notice of meeting shall contain:
1. Disclosures with regard to the manner provided
in the circular
2. How to access and participate in the meeting
Notice of meeting should be displayed on website
of the company.
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18.
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If notice of meeting issued prior to the date
of this circular
|
Then framework proposed in this circular may be
adopted for the meeting.
Fresh notice of shorter duration may also be
issued, if consent in accordance with section 101(1) has been obtained from members.
|
Then framework proposed in this circular may be
adopted for the meeting.
Fresh notice of shorter duration may also be
issued, if consent in accordance with section 101(1) has been obtained from members.
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19.
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Filing with Registrar of Companies
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Resolutions passed in accordance with this
mechanism shall be filed with the Registrar of Companies with in 60 days of
the meeting,
And it should be clearly indicating that the
mechanism provided in the circular along with other provisions of the Act and
rules were duly complied with during
such meeting.
|
Resolutions passed in accordance with this
mechanism shall be filed with the Registrar of Companies with in 60 days of
the meeting,
And it should be clearly indicating that the
mechanism provided in the circular along with other provisions of the Act and
rules were duly complied with during
such meeting.
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20.
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Helpline Number
|
The company should also provide a helpline number
through RTA, technology provider or otherwise for shareholders who need
assistance.
|
The company should also provide a helpline number
through RTA, technology provider or otherwise for shareholders who need
assistance.
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21.
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Other Compliance
|
The company shall ensure that all other
compliances associated with the provisions relating to general meeting viz
making of disclosures, inspection of related documents by members, or
authorisations for voting by body corporate etc as provided in the Act and
the articles of association of the company are made through electronic mode.
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The company shall ensure that all other
compliances associated with the provisions relating to general meeting viz
making of disclosures, inspection of related documents by members, or
authorisations for voting by body corporate etc as provided in the Act and
the articles of association of the company are made through electronic mode.
|
CS Shivam Rastogi
Immediate Past Chairman,
Noida Chapter of NIRC of ICSI;
Managing Partner,
SVR & Co. Company Secretaries
+ 91 78279 844 34 | csshivam@svrcindia.com
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