Teleconferencing


The general rule is that board meetings have to be attended personally by the directors in order that they may constitute a quorum and conduct business. However, in our age of modern technology, the courts may take judicial notice that business transactions may be made through teleconferencing among people in two or three locations through an electronic medium (De Leon, The Corporation Code, p. 479). The term "teleconferencing" means an interactive group communication (three or more people in two or more locations) through an electronic medium (SEC Opinion No. 16-01 dated 19 January 2016).

This principle on teleconferencing was affirmed in SEC Memorandum Circular No. 15, Series of 2001, where the Securities and Exchange Commission, in relation to the Electronic Commerce Act and Section 25 of the Corporation Code, issued the guidelines for the conduct of teleconferencing and videoconferencing of the board of directors which include the following features:

1. Sending of notices to the directors as provided in the bylaws, with a request for confirmation on whether a director will attend physically or through teleconferencing;

2. Providing good tele/video conference equipment facilities;

3. Recording the proceedings and preservation of the minutes, records, tape recordings and/or other electronic recording mechanism as part of the records of the corporation;

4. Numbering and marking of all documents in the agenda in such a way that all directors, physically or electronically present, can easily follow, refer to the documents and participate in the meeting;

5. Entering into the record and during the meeting the full identification of each participant; and

6. Requiring all directors who attended the meeting to sign the minutes to dispel all doubts on matters taken up during the meeting.

However, the above discussion applies only to board meetings as, clarified under the SEC Opinion cited above, and not to stockholders' meetings. …

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