ECFA’s Board Modifying Board Meeting Requirement

In its meeting last week, the ECFA Board of Directors approved a modification to the board meeting requirement for member organizations.

ECFA’s Standard 2 requires a minimum of two board meetings per year that are conducted at reasonably spaced intervals. The Standard 2 commentary has stipulated that at least one of the two meetings must be an in-person board meeting.

In recognition of the increasing practicality of conducting virtual board meetings, ECFA’s Board modified the Standard 2 commentary to allow members the alternative to conduct virtual board meetings, even if a member organization conducting the minimum of two board meetings a year held both of the meetings virtually.

The Standard 2 commentary continues to observe that face-to-face board meetings are always preferable. Board meetings may be conducted by means of a remote electronic communications system (including telephone conference calls, videoconferencing technology, or the Internet) but only if: (1) each person entitled to participate in the meeting consents to the meeting being held by means of that system, and (2) the system provides access to the meeting in a manner or using a method by which each person participating in the meeting can communicate concurrently with each other participant (a “meeting” by e-mail or text message does not meet this criteria).

The portion of the Standard 2 commentary reflecting the modification is shown here:

While face-to-face board meetings are always preferable, an acceptable alternative is to conduct meetings by means of a remote electronic communications system, including telephone conference calls, video-conferencing technology, or the Internet, but only if: (1) each person entitled to participate in the meeting consents to the meeting being held by means of that system, and (2) the system provides access to the meeting in a manner or using a method by which each person participating in the meeting can communicate concurrently with each other participant (a “meeting” by e-mail or text message does not meet this criteria).

Read Standard 2 in it's entirety here.


This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.

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