Sub: Further relaxations by the Ministry of Corporate Affairs till September 30, 2020 for conduct of Board meetings to approve its financial statements through VC or OAVM and registration of Independent Directors in the Independent Directors Data Bank.

We are happy to inform you that the Ministry of Corporate Affairs has further provided following relaxations for conduct of Board meetings to approve its financial statements through VC or OAVM and registration of Independent Directors in the Independent Directors Data Bank till September 30, 2020.

1.   The Ministry of Corporate Affairs (the MCA) has allowed companies to hold annual general meeting (AGM) upto 30th September, 2020 (earlier it was allowed upto 30th June, 2020) in a manner similar to the one provided in, which deal with conduct of extraordinary general meeting (EGM) and by virtue of the same the companies have been allowed the holding of annual general meeting (AGM) through video conferencing (VC) or other audio visual means (OAVM). it has been decided that the companies be allowed to conduct their AGM through video conferencing (VC) or other audio visual means (OAVM), during the calendar at year 2020, subject to the fulfilment of the certain requirements. (details may be referred from the Announcement available at https://resource.cdn.icai.org/59541clcgc48464.pdf)

2.   Every individual who has been appointed as an independent director in a company shall within a period of ten months from such commencement, i.e., 1st December, 2019 or who intends to get appointed as an independent director shall before such appointment, shall apply online to the institute for inclusion of his name in the data bank for a period of one year or five years or for his life-time till he continues to hold the office of an independent director in any company.

An individual shall not be required to pass the online proficiency self-assessment test, when he has served as a director or key managerial personnel, for a total period of not less than ten years, as on the date of inclusion of his name in the databank, in a listed public company; or unlisted public company having a paid-up share capital of rupees ten crore or more; or body corporate listed on a recognized stock exchange:”.

MCA has further extended the last date for registration of details of Independent Directors in the ID Data Bank for further three months, i.e. upto 30th September, 2020.

Members may note the above.

Sincerely Yours,

Chairman and Vice Chairman
Corporate Laws & Corporate Governance Committee
The Institute of Chartered Accountants of India