Comments
An Indian company can now hold its board meeting in a foreign country say Singapore with its directors participating in that meeting through video conferencing from say London or New York or Mumbai.
This is now possible with the corporate affairs ministry diluting the rigour of video participation of directors' in Board Meetings.
Prior to this change, directors were allowed to participate in board meetings through video conferencing only when the meeting was held in India.
This stipulation of the need to hold the board meeting in India when video conferencing is involved has now been done away with.
"This MCA move will facilitate increased participation of Directors in Board Meetings, aid in reduced cost of holding such Meetings and augurs well for improved and efficient Board governance",
S.N. Ananthasubramanian, practising company secretary, told Business Line.
Aseem Chawla, Partner,MPC Legal, a law firm, said this is a welcome step.
“It not only recognises the phenomenon of global mobility but also takes in consideration of the fact that companies in present times have board members who hail from different geographies as well. It is a forward looking amendment”.
However, the Corporate Affairs Ministry has now said that Audit committee meetings held through video conferencing cannot consider for approval the financial statements including consolidated financial statements.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.