Virtual Board Meetings: A boon to Board Members: Ruchita Dilip Mutha

The Companies Act of 2013 introduced provisions for virtual board meetings, allowing company directors to attend and participate in meetings remotely. This has become increasingly important in today’s world where travel is difficult and businesses are spread across multiple locations. Here is a closer look at virtual board meetings and the rules and regulations surrounding them:

Definition :

A virtual board meeting is a meeting of the board of directors of a company that is conducted through video conferencing, teleconferencing or any other audio-visual means. These meetings are conducted using technology that allows all participants to see and hear each other, and to communicate in real-time.

Conducting Virtual Meetings :

According to the Companies Act, virtual board meetings can be conducted as long as all participants can hear and see each other during the meeting. The notice for the meeting must specify that it will be held virtually, and all necessary arrangements for the meeting must be made in advance.

Quorum :

For a virtual board meeting to be valid, a quorum of directors must be present at the meeting. The quorum requirements for virtual meetings are the same as for physical meetings.

Minutes :

The minutes of the virtual board meeting must be recorded and signed by the chairman of the meeting and circulated to all directors. The minutes must also be entered into the minutes book maintained by the company.

Participation :

Directors who participate in a virtual board meeting are deemed to be present at the meeting for the purposes of determining a quorum and for voting on resolutions.

Voting :

The Companies Act allows for electronic voting by directors, which can be done through email or other electronic means. However, the votes of directors must be recorded and included in the minutes of the meeting.

Virtual board meetings have become an essential tool for companies to conduct business in today’s fast-paced and globalized world. They offer convenience and flexibility, allowing directors to participate in meetings from anywhere in the world. However, it is important to ensure that virtual board meetings are conducted in compliance with the rules and regulations set out in the Companies Act of 2013. By following these rules, companies can take advantage of the benefits of virtual meetings while maintaining good corporate governance practices.