Board meeting through video conferencing

[Arun Kumar]

Dear Members

 

When the directors attends the board meeting through video conferencing, whether he can be counted for quorum.

 

 

Regars

 

Arun 

[Vivek Hegde]

Arun

No. Still attendance thru' Vedio conferencing will sot be counted for quorum. New companies bill has a provision for this which is yet to be notified.

Vivek

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CS Vivek Hegde,B.com, ACS, CWA
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[SUNIL KUMAR B.G.]

Yes. it is true that Board meeting through video conference is not available, but some of the Indian companies by altering their articles are conducting their Board meeting through video conferencing. Ex: Reliance Industries is conducts it's some of board meetings through video conferencing(This information is given by one of the senior practicing member of Chennai in a CS event organized by the Mysore chapter)

Other Members can share their views on this matters

Warm Regards,

Sunil Kumar B.G.
Practicing Company Secretary
B.B.M.,A.C.S.
Mysore
+91-9945653732
http://cssunilbangerabg.blogspot.com/

[CS.Omkar]

Dear Sunil,

 

Whether those companies are holding Board meeting through Video Conference(VC) only? No quorum is present in a designated place where meeting is called?

 

I agree with Mr. Vivek that attendance through VC is not counted for quorum as of now.

 

Regards...Omkar

[CS A Rengarajan]

The holding of board meeting through video conference has already
inserted in the draft companies bill 2009 but it says the procedure
will be notified later ( as prescribed) As of now, no provision in
companies act to conduct board meeting through video conference

Regards

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csarengarajan
Company Secretary, Chennai
email csaren...@gmail.com
mobile 093810 11200
SHARING KNOWLEDGE SKY IS THE LIMIT

[VIJAY SHYAM ACHARYA]

agree. video conferencing helps to ensure that more directors are actively participaring in the proceedings of the meetings & is treated as a good governance & transparency practice. In fact, many companies are recording presence thru video conference in the board minutes. However, as on date, technically such directors cant be counted for quorum.
Regards,

--- On Mon, 2/15/10, CS A Rengarajan <csaren...@gmail.com> wrote:

[Sai Adhi]

With the advent of IT in E-filing, Online information. It is still not understood why the MCA has not recognized Video conferencing as an effective mode of participation in Meetings, which is cost beneficial, time savings(journey) and having lot of other advantages.

The purpose of attending Board meetings is to participate in the discussions and take decisions, which can be very well addressed through Video/tele conferencing.

Further Section 287 does not specifically say personal presence of directors.

In such scenario, It is not feasible to wait for long awaited companies bill to be passed to recognise this mode.

It is always in the hands of MCA to give a notification and make the corporate Governance comfortable instead of proposing it in new bill.

Thanks
Adithya

[Vivek Hegde]

Dear Mr. Adithya

I agree with you. But just like long awaited companies bill the notification in this regard is also long awaited. In understand our professional bodies have made so many references to the Ministry in this regard. But there is no favorable response.

But one more thing you should notice here is conducting meetings in VC mode is not prohibited. Only thing is it will not be counted for quorum purpose. And physical presence at least 4 times a year should be required (in my opinion)

[SUNIL KUMAR B.G.]

I agree with Mr.Vivek, as i already mentioned, reliance industries is conducting some of it's BM through VC but they conduct 4 meetings a year with the physical presence of majority directors (valid quorum).

Since 2003 we are discussing about this issue but still no words from MCA , except proposal in the company bill (still there is no sign of green signal for it) atleast in piece meal basis MCA can give notification to give effect to this matter.

[Astarag]

they will do it one day or other soon, sir

ministry  is mooving very fast compared to other ministries 

I am confident about it

have faith

with regards,

Cs. P.A. Patnaik