Board Meetings through Video Conferencing


Can you please tell me whether the board meetings can be held through video conferencing?

The facts of the case are:

One private limited company which is a subsidiary of the company abroad.It has appointed 5 directors wherein all the 4 directors are from the abroad and the 1 director is in India who is also a Managing Director.

Now when the board meetings are to be held and to have a valid quorum bare minimum of 2 directors are required and hence all the time atleast 1 person from abroad has to come to India just for thr sake of valid meeting, and hence the company is incurring huge travel costs for the directors travel to India.

Hence can we suggest to the board that board meeting can be held through video conferencing which would be valid in terms of provisions of the company Act.

Kindly advice.

CA Sanjay Nahar ACA ACS

09884111564

 
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PROFESSIONAL

dear sanjay.

Presently ,holding Board Meeting thro video conference is not recognised .

you can hold board meeting any where in the world. so keep BM  outside India and comply with the Provisions of Compnies Act.

inbaa

 
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LEGAL COUNSEL

As rightly suggested by Inbavadivu, The board meeting can be held abroad and the Indian Director can join the meeting by con-call or video conferencing. There is no bar on holding the meeting abroad.

 
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As rightly suggested by Inbavadivu n Vasudevan. board meeting can't be held through video conferencing in India as per companies Act, 1956 , but in the proposed companies bill, it is recognized.

 
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Meeting through video Conferening though is not officially recognised but none of the provision is stopping it either....

Provisions requires quorum, if that is there... remaining can join through video conferencing and get involved themselves as active participants as others i.e can contibute thoughts ,can accept or reject etc. ... Technically their acceptance or denial doesnot recognised by the law but will lead to true transparency and democracy...

 
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Student Final Course

does the Companies Act Contain Any Provision regarding the convening of Board Meeting through vedio confrencing ?

 

 
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Though there is no provision for conducting the Board meeting through video conferencing in the Companies Act, 1956, but recently MCA has allowed the same after following the provisions as given in MCA circular no. 28/2011 dated 20.05.2011 (copy attached). 

Also check circular no. 35/2011 dated 06.06.2011-containing clarification on the circular no. 28/2011 (available at MCA site).



Attached File : 42681 189442 45 circular 28 2011 20may2011.pdf downloaded 629 times
 
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