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NCLT - Board meetings by video-conferencing

In Achintya Kumar Barua vs. Ranjit Barthkur, the NCLAT has held recently that if any director desires to attend board meetings by video conferencing, the company is bound to allow attendance in this manner. In other words, it is not up to the company or at the discretion of the Chairman/Company Secretary whether or not to allow attendance by video conferencing. The right and option is with any director who so desires. NCLAT has held that the words of Section 173(2) of the Companies Act, 2013 are clear on this. There are, of course, some specified resolutions which cannot be considered in a meeting held by video-conference. However, a proviso inserted to Section 173(2) by the Companies (Amendment) Act, 2017, though not yet brought into effect, says that even in respect of these matters, if the required quorum is physically present, other directors can attend and participate by video-conferencing.

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