Module: | Statutory Audit, NFRA & ICAI Standards
Q52: Consider the following statements regarding the rules for holding Annual General Meetings (AGMs) via Video Conferencing (VC) or Other Audio Visual Means (OAVM) in 2025:
1. Companies are permitted to hold their AGMs entirely through Video Conferencing without the requirement of a physical venue.
2. The company must strictly maintain a recorded transcript of the AGM conducted via Video Conferencing and make it available on its website.
3. Shareholders attending the AGM via Video Conferencing are not counted for the purpose of determining the quorum under Section 103 of the Companies Act.
Which of the above statements is/are incorrect?
2. The company must strictly maintain a recorded transcript of the AGM conducted via Video Conferencing and make it available on its website.
3. Shareholders attending the AGM via Video Conferencing are not counted for the purpose of determining the quorum under Section 103 of the Companies Act.
Which of the above statements is/are incorrect?
✅ Correct Answer: C
🎯 Quick Answer:
C. Only 3 is incorrect.Structural Breakdown: Statement 1 is correct; the MCA has formalized the facility to hold AGMs completely digitally.
Statement 2 is correct; maintaining a recorded transcript in safe custody and hosting it publicly ensures transparency of the proceedings.
Statement 3 is incorrect; the law explicitly states that members attending through VC or OAVM shall be successfully counted for the purpose of quorum.
Historical/Related Context: Originally introduced as an emergency measure during the 2020 COVID-19 lockdowns, the MCA realized the immense benefits of digital AGMs for corporate democracy and eventually regularized the framework for subsequent years.
Causal Reasoning: If digital attendees were not counted toward the quorum, the entire purpose of allowing virtual meetings would be defeated, as companies would constantly fail to legally convene their meetings despite high online attendance.