Question

A foreign director attended Board meetings only through video conferencing for a period of 12 months. What is true?

• A. Board meeting attended by video conferencing is sufficient attendance for the purpose of section 167(1)(b).
• B. He did not attend any meeting in person so his appointment stands cancelled.
• C. He is liable to retire.
• D. Meeting is termed invalid.

Answer 1

The correct option is A Board meeting attended by video conferencing is sufficient attendance for the purpose of section 167(1)(b).

Under section 167 (1) (b), The office of a director shall become vacant in case he absents himself from all the meetings of the Board of Directors held during a period of twelve months with or without seeking leave of absence of the Board.

Under section 173, The participation of directors in a meeting of the Board may be either in person or through video conferencing or other audio visual means, as may be prescribed, which are capable of recording and recognising the participation of the directors and of recording and storing the proceedings of such meetings along with date and time