With this amendment some board matters which were restricted to pass through physical board meeting only, can now be dealt with in a Virtual Board Meeting
However one should keep following points in mind while conducting Virtual Board Meeting:
- Virtual Board Meeting can be held anytime with 7 days’ notice given to every director either through electronic means or by post or hand delivered
- It is necessary that all participants to Virtual Board Meeting have access to same technology that enables them to participate in the meeting without any constraints
- It is necessary that virtual board meeting is recorded the audio with video and the recording is saved for records
- It is necessary that only concerned directors are attending the meeting and no other person is allowed to attend the same in any manner
- It is necessary to ensure that proper identification procedures for persons attending the meeting and security measures for safeguarding integrity of the meeting are undertaken
Virtual Board meetings has upside such as reduced travel, more attendance, shorter agendas and quick presentation.
Accounting definitions and terms for small businesses
Recent amendment is a good move bringing ease of business conduct for all companies on the background of Covid pandemic.
Though social distancing measures are going to relax at some point in future, we feel that most of the companies will continue to adapt the series of online board meetings throughout the year for its obvious benefits