MCA allows companies to hold board meetings via video conference till June 30 due to Corona Outbreak

New Delhi, Mar 20 (KNN) The Ministry of Corporate Affairs (MCA) has issued a notification to allow companies to hold board meetings through video conferencing till June 30 in an attempt to reduce physical contact and limit the spread of the Covid-19 outbreak.

In a notification, the Ministry of Corporate Affairs (MCA) said, ''Considering the need to take precautionary steps to overcome the outbreak of the coronavirus (Covid-19), the Government has in-principle decided to relax the requirement of holding Board meetings with physical presence of directors under section 173 (2) r/w rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 for approval of the annual financial statements, Board's report, etc.''

''Such meetings may till 30th June, 2020 be held through video conferencing or other audio-visual means by duly ensuring compliance of rule 3 of the said rules. The necessary changes in the rules in this regard are expected to be notified soon,'' the notification further said.

So far, the coronavirus cases in India crossed 200 on Friday after 13 new cases were reported from various parts of the country. India's tally of Covid-19 cases includes fresh cases from Maharashtra, Gujarat, Punjab, West Bengal, Uttar Pradesh and Andhra Pradesh.