Top 100 companies to webcast Live proceedings of AGMs

Moneylife Digital Team 11 May 2018

Economy & Nation

Market regulator Securities and Exchange Board of India (SEBI) has asked top 100 companies based on market capitalisation to webcast live proceedings of their annual general meetings (AGMs). This decision was based on recommendations from the Uday Kotak Committee on Corporate Governance to webcast each shareholder meeting. However, to begin with SEBI has asked only top 100 companies to live webcast annual meetings.

Issuing the SEBI (Listing Obligations and Disclosure Requirement) (Amendment) Regulations 2018, the market regulator said, "The top 100 listed entities by market capitalization, determined as on 31 March of every financial year, shall hold their annual general meetings within a period of five months from the date of closing of the financial year. The top 100 listed entities shall provide one-way live webcast of the proceedings of the annual general meetings."

The Kotak Committee, has recommended live one-way webcasts of all shareholder meetings, including AGMs, and extraordinary general meetings (EGMs).

During its Board meeting on 28 March 2018, SEBI had reviewed recommendations made by the Kotak Committee. The market regulator had accepted 40 out of 80 recommendations of the Committee. This includes reducing maximum number of directors on a company board to eight from 10 from 1 April 2019 and by seven from 1 April 2020. Similarly, there would be minimum six directors on the board of top 1000 listed companies by market capitalisation by 1 April 2019 and for top 2000 entities by 1 April 2020. The top 500 listed entities by market capitalisation will have to have one-woman independent director by 1 April 2019, followed by top 1000 entities by 1 April 2020.

SEBI has also recommended separation of post of Chief Executive and Managing Director and Chairperson. This will be first applicable for top 500 entities from 1 April 2020.

The Committee had also recommended to keep open e-voting portal up to 11.59pm on meeting date as against existing provision for keeping e-voting open till 5pm on day preceding the AGM. SEBI, however, did not accept the recommendation to keep e-voting open till 11.59pm.

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