Press Information Bureau

Government of India

Ministry of Corporate Affairs

04-August-2011 18:24 IST

Video Conferencing for AGMs

The Ministry of Corporate Affairs has recognized participation by shareholders in the Annual General Meetings under the Companies Act, 1956 for all companies through video conference. Vide Circular dated 06.06.2011 issued by the Ministry, it is proposed to be mandatory for all listed companies for financial year 2012-2013 and onwards.

This information was given by the Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh in reply to a written question in the Lok Sabha today whether the Government has any proposal to make Video Conferencing mandatory in Annual General Meetings (AGMs) of listed companies to facilitate the stakeholders to participate in the meetings.

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Video conferencing for AGMs recognized and proposed mandatory for listed companies from a specified financial year to enable participation. Recognition of shareholder participation by video conferencing is provided under the Companies Act framework, and a Ministry of Corporate Affairs circular dated 06.06.2011 proposes mandatory adoption of video conferencing for listed companies from the financial year 2012-2013 onwards, converting facilitative measures into a compliance obligation for listed entities.