Virtual AGMs and EGMs on a Permanent Statutory Basis#
During the pandemic, the Ministry of Corporate Affairs (MCA) issued temporary circulars allowing companies to conduct their Annual General Meetings (AGMs) and Extraordinary General Meetings (EGMs) through Video Conferencing (VC) or Other Audio Visual Means (OAVM). These temporary reprieves became highly popular for their cost-effectiveness and higher shareholder participation.
With the Corporate Laws (Amendment) Bill 2026, the temporary fix is becoming a permanent statutory right.
Amendment to Section 96#
The proposed amendment to Section 96 of the Companies Act, 2013, officially recognizes virtual and hybrid meetings.
Key Features of the New Provision:#
- Permanent Validity: Companies are no longer reliant on year-to-year extensions by the MCA. Virtual meetings are now a permanent statutory option.
- Hybrid Meetings Allowed: Companies can choose to hold meetings entirely online or adopt a hybrid model where a physical venue is provided, but shareholders have the statutory right to participate virtually.
- Reduced Notice Period for EGMs: To facilitate faster decision-making, the notice period for convening an EGM virtually is proposed to be reduced to 7 days (down from the standard 21 days), provided certain conditions regarding electronic voting are met.
Implications for Companies#
- Cost Savings: Eliminates the massive costs associated with booking physical venues, printing, and logistics for large shareholder bases.
- Higher Quorum and Participation: Institutional and retail investors can easily attend multiple AGMs on the same day from different locations, leading to better corporate democracy.
- Technology Infrastructure: Companies must now invest in robust, secure, and verifiable VC/OAVM platforms to ensure the sanctity of the voting process and the meeting proceedings.
This permanent statutory backing is a massive leap forward for corporate India, embracing the digital-first reality of modern governance.