Close on the heels of Corporate Affairs Ministry (MCA) allowing companies to hold virtual AGMs till December 31, the Securities and Exchange Board of India (SEBI) has dispensed with the existing norm requiring listed entities to send physical copy of their full annual reports to shareholders. This relaxation will be available till December 31.
This dispensation — allowed in view of the Covid-19 pandemic—will be available to those listed companies who need to conduct their AGMs during calendar year 2021.
Also, the capital market watchdog has done away with the requirement of sending proxy forms for general meetings held through electronic mode. This relaxation will be available till December end this year, SEBI has said.
Currently, Regulation 44(4) of the SEBI’s Listing Obligations and Disclosure Requirements (LODR) stipulates that a listed entity would have to send proxy forms to holders of securities in all classes mentioning that a holder may vote either for or against a resolution. Also, LODR regulation stipulates that a listed entity would have to send hard copies of full annual reports to those shareholders who request for the same.
It maybe recalled that MCA had on January 13 allowed companies to hold their Annual General Meetings (AGMs) scheduled for 2021 through video conferencing (VC) or other audio-visual means till December end.