Modern Technique for Convening Board Meeting

As per the Company’s act of 1956, the shareholders of a company are allowed to participate in the annual meeting of the company through one of the advanced electronic methods. Audio video conference and teleconferencing are some of the techniques use to communicate with shareholders who are away from the country.

Shareholders can participate and cast their votes even while they are away from the meeting venue. They also have an option of appointing a proxy who can attend the meeting and make decision of their behalf. The Ministry of Corporate Affairs has drafted rules and regulations, which state techniques of conducting the Annual General Meeting for any company. Some of the rules are as follows –

a.   The notice should be sent to all the members of the company, which lists out the details mentions of the annual general meeting

b. The notice also speaks about the electronic approach of voting

c.    The Chairman of the company has to be physically present for the meeting

d. These companies use the best equipment for video/telephone conferencing

e.   The details of the meeting should be recorded, which act as a proof in the Court of Law

f.   The company should ensure that the meeting is attended by a proxies or shareholders and no one other than them

g. To ensure the recording has clarity and the voice of the shareholder is heard loud and clear, the Chairman or Companies Secretary can interrupt and ask the shareholders to repeat the statement for correction

h.    The time, date, and place of the annual general meeting should be mentioned on the Notice for meeting

As per the companies act, it is necessary to get an approval from the directors and other Board members of the company for choosing the virtual mode of convening. A notice for meeting should be sent before the date when it is going to be conducted, along with the contact details and email address of the director. This will give the members enough time to intimate the company about their mode of…

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