The Tax Publishers

Video Conferencing Facility--Whether Mandatory for Board Meetings

Narendra Kumar

A director may participate in the Board meeting through video conferencing or other audio-visual means. Such facility of participation is a right of every director as well as it is the responsibility of chairperson and directors towards the same. In this context, in this article the learned author attempts to delineate the case titled as 'Achintya Kumar Barua Alias Manju Baruah & Ors. v. Ranjit Barthkur & Anr.' (2018) 207 Com. Cas 47 (NCLAT-New Delhi) and the provisions of section 173(2) of the Companies Act related thereto.

1. Prologue

In the world of globalisation, video conferencing has become the most preferable mode of communication which encourages wider participation in a meeting without physically presence at the meeting. This is the most convenient and time saving mode of communication. In Achintya Kumar Barua Alias Manju Baruah & Ors. v. Ranjit Barthkur & Anr. (2018) 207 Comp Cas 47(NCLAT-New Delhi), an appeal against Tribunal's verdict as to allowability of video conferencing facility has been filed. By way of discussing this case, the article enlightens the issue as to whether the provision regarding facility of participation through video conferencingis directory or mandatory in nature. Further, it lays emphasis on the responsibility of company and its director towards the same.

2. Definition of video conferencing

According to Explanation to rule 3 of the Companies (Meetings of Board and its Powers) Rules, 2014, 'video conferencing or other audio visual' means audio-visual electronic communication facility employed which enables all the persons participating in a meeting to communicate concurrently with each other without an intermediary and to participate effectively in the meeting.

The word 'an intermediary' is not defined in the Companies Act, 2013. As per the common parlance, intermediary is a person who acts as a link between people in order to try and bring about an agreement, i.e., a mediator.

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