Video conference mandatory for AGM from next fiscal - MCA

The Ministry of Corporate Affairs on Thursday said it would be mandatory for listed companies to provide the option of video conferencing for shareholders to participate in the annual general meeting from next fiscal.

“In respect of shareholders' meetings to be held during 2011-12, the video conferencing facility for shareholders is optional. Thereafter, it is mandatory for all listed companies,” an official statement said. The move, part of the MCA's green initiative campaign for corporate governance, would provide larger participation and help curbing costs.

The video conference facility enables all persons participating in a meeting to communicate concurrently with each other without an intermediary, and to participate effectively in the meeting. However, the Ministry said it was not mandatory for companies to provide its directors, the facility to attend meetings through video conferencing.

Listed companies will also have to ensure that video conferencing connectivity during such meetings at least five places in India. — PTI