Below the line

Companies whose annual general meetings were to be held in 2020 (for FY20), but unable to hold them virtually.

They are hoping that the Corporate Affairs Ministry will give them one more relief (read it as extension).

Already the MCA had in January this year in the wake of Covid-19 given them a relief to hold such AGMs for FY20 by December 31 this year in cases where the companies had obtained individual extension from the Registrar of Companies. Now it transpires that RoCs are not inclined — in the absence of specific instruction/circular from MCA — to give another case by case extension beyond December 31 this year! Will MCA blink again is the moot question?

Even if MCA does not relent on providing another window for holding AGMs for FY20, India Inc is hoping government at least give an extension for GMS for FY21.

After more than a year of virtual meetings, India is enthusiastic about physically participating in ‘Expo 2020 Dubai’ next month. The country is putting up a fascinating pavilion which, with its kinetic façade made up of 600 individual colourful blocks fixed on rotating panels, is set to be a sight in itself, officials explained ar a recent briefing.

Not surprisingly, after being holed up in the confines of four walls for months together, many Ministers from both the Centre and States, senior officials, and business persons, are ready to head to this grand and glitzy show that will have participants from over 190 nations. But, while the scale of the event is impressing many, some remain worried about the pandemic.

“One must pray that the venue for attracting investments does not become one for attracting new variants of the virus,” a government official said tongue-in-cheek.

Come January 1, 2022, Corporate India will see an important revolution in the way independent directors are appointed. Every independent director’s appointment and reappointment will need a special resolution from this date. This would mean 75 per cent of those present and voting would have to approve the candidate proposed, which would imply that no such director can be appointed or reappointed without the backing of institutional investors.

Reason: It now transpires that institutional shareholding average on corporate India is now about 34 per cent. With promoters average shareholding being around 50 per cent, the blessings of institutional investors are going to be a must from January 1 next year for every aspiring independent director. This will be a momentous development for corporate governance in a year when India is celebrating Azadi Ka Amrit Mahotsav , noted a corporate governance expert.

It looks like the facility to attend the annual general meetings (AGMs) of companies through virtual mode has been gaining acceptance among those who can’t attend the meetings if the meetings are scheduled in a far-off location. Participating in the 33rd AGM of MRPL on Saturday, one of the shareholders of the company said that this mode is quite helpful to shareholders like him.

He could ask some questions and get answers for them. It would not have been possible for him, if it was in the physical mode. Thanking the people concerned for this virtual mode of AGM, he said one of the NRIs from Muscat also participated in MRPL’s AGM. During the pre-Covid days, MRPL used to conduct AGMs in Mangaluru.

Tired of using salutations such as ‘Sir or Madam’ while addressing government officials? Come to Mathur Grama Panchayat in Kerala’s Palakkad district. The panchayat council has talked down the use of such salutations by declaring a ban. The council believes that ‘Sir or Madam’ are remnants of the colonial rule.

The council has gone on to recommend alternatives by displaying names and designations of officials prominently on the respective desks. Those who think it is not fair to address an elderly or senior person by name may use a more expedient or acceptable ‘Chettan’ (elder brother) or ‘Chechi’ (elder sister).

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