Corporate India have got a breather in these trying COVID-19 times with the Corporate Affairs Ministry (MCA) now allowing companies to send notices via e-mail to their shareholders for conduct of extraordinary general meetings (EGMs) before June 30.
The notices can be sent only through e-mails registered with the company or with the depository participant/depository, the MCA has said. Also, a copy of the notice would have to be displayed on the website of the company and the stock exchange (for listed companies).
This clarification has come in the form of a circular on Monday in the wake of several stakeholders highlighting the difficulties in serving and receiving notices/responses by post in the current circumstances.
It also comes less than a week after MCA allowed listed companies or companies with 1,099 shareholders or more—who are required to provide e-voting facility under company law—to hold EGMs through video conferencing or other audio visual means and e-voting. For other small companies, the MCA has put in place a simplified mechanism for voting through registered e-mails for easy compliance.
MCA’s latest clarifications are expected to greatly facilitate the conduct of business by companies during these extraordinary times, an official release said.