New Delhi, Apr 8 (PTI) Providing relief to companies amid the nationwide lockdown, the government on Wednesday allowed them to conduct extraordinary general meetings through video conferences and get approvals for proposals through electronic voting facility.

The corporate affairs ministry's decision seeks to facilitate compliances during the current lockdown and other restrictions that are in place due to the coronavirus pandemic.

Listed companies or those with at least 1,000 shareholders that are required to provide e-voting facility under the Companies Act, 2013 have been permitted to conduct EGMs through video conference or other audio visual means, the ministry said in a release.

For other companies, the ministry said a "highly simplified mechanism for voting through registered emails has been put in place for easy compliance".

All companies using these options are required to maintain a recorded transcript of the entire proceedings in safe custody. Further, public companies have to host the transcript on their website for greater transparency.

"Further, all resolutions passed through this framework will be required to filed with the RoC (Registrar of Companies) within 60 days, so that such resolutions may be viewed publicly," the release said.

EGMs (Extra Ordinary Meetings) of shareholders are convened to get approvals for urgent business proposals.

The relaxation, which would be in place till June 30, would ensure that there is no requirement for shareholders to be physically present at a common venue for an EGM.

The Act allows ordinary and special resolutions to be passed through postal ballot/e-voting route without holding a physical general meeting.

"However, in present lockdown/social distancing conditions due to COVID-19, postal ballot facility cannot be utilised by the companies," the release said.

The ministry said it has also taken note of various representations received from industry associations and corporates on the need to facilitate companies in taking certain emergent/ urgent measures in the face of extreme disruptions and dislocation caused by the pandemic.

In March, the ministry allowed conducting of board meetings through video conferencing or other audio visual means, including meetings on items where the physical presence of directors is otherwise required.

The latest framework leverages the strengths of digital India by using a combination of video conference and e-voting/ simplified voting through registered emails to enable companies conduct their EGMs, the ministry said.

"As the meetings will be conducted over video conference/ other audio visual means, the facility for appointment of proxies has been dispensed with, while representatives of bodies corporate will continue to get appointed for participation in such meetings," it added.

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