Extension of relaxation for conducting Board Meeting to approve Financial Statements till 30th September,2020

Ministry of Corporate Affairs (MCA) vide its notification has further relaxed the requirement of holding Board meetings with physical presence of directors under section 173 (2) read with rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 from 30^th June,2020 to 30^th September,2020.

As per Rule 4 of Companies (Meetings of Board and its Powers) Rules, 2014, the following matters cannot be dealt with in a meeting through Video conferencing (VC) or Other Audio-Visual Means (OAVM):

• Approval of the Annual Financial Statements;
• Approval of the Board’s Reports;
• Approval of the Prospectus; and
• Audit Committee meetings for consideration of Financial Statement
• The approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover.

However, in view of COVID-19, MCA has provided relaxation with respect to the above requirement by providing that the above matters can be dealt with in a meeting through VC or OAVM till 30^Th September,2020.

Source: MCA|F. No. 1/32/2013-CL-V-Part|