The Ministry of Corporate Affairs said that From the Next Fiscal Year, every listed companies must provide the option of video conferencing for all the shareholders to participate in the annual general meeting and its connectivity during such meetings will have at least five place in India.
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.
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