Video conferencing not mandatory for shareholders' meeting
31st January, 2012
Shareholders' meeting through video conferencing will not be mandatory after 2011-12 also. It will continue to be optional for listed companies as per Circular No. 72/2011, dated 27-12-2011 issued by the Ministry of Corporate Affairs.
In its June, 2011 circular, the MCA had asked listed companies to mandatorily conduct shareholders' meeting electronically after 2011-12. The relaxation comes after finding such video conferencing requirement to be inconsistent with the Companies Act, 1956 and also with the proposed Companies Bill, 2011.
For the purpose of e-voting (electronically voting) in annual meetings, the MCA had earlier authorized National Security Depository Limited and Central Depository Services (India) Limited as agencies for providing e-voting services subject to possession of specified standards certificate. The present circular provides that services of any agency which has obtained the requisite certificate can be used by companies.