Director can not insist participation by electronic mode

By | August 16, 2015

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Director can not insist participation by electronic mode

Q: where companies do not provide the directors with the facility of participation in meetings through electronic mode, can the directors insist on attending the meetings through such mode?

Answer:   Section 173(2) provides the option to the director to participate in Board meeting so convened by electronic mode. Further Rule 3 of the Companies (Meetings of the Board and its Powers) Rules, 2014 is required to be complied with only if a company provides the facility of participation through electronic mode. It is thus, an option with the director to attend the Board Meeting through electronic mode but it is not his right. This option may be exercised by the Director only when this facility is provided by the company to all its director(s). If the company has not offered to provide facility of participation through electronic mode and the director insists to attend the meeting through electronic mode, the company may decide whether to provide the same or not.

 

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