Formerly, Nevada permitted members of boards of directors and board committees to participate in meetings by means of a telephone conference or similar methods of communication. Stockholders were likewise permitted to participate in stockholder meetings.

Both statutes included the requirement that all persons participating in the meeting had to be able to “hear each other”. California imposes a similar condition on director participation in meetings by means of telephone or electronic video screen communication. Cal. Corp. Code § 307(a)(6). See Board Meetings and the ‘Annihilation of Distance.

Last year, the Nevada Secretary of State sponsored legislation with the aim of modernizing Nevada’s corporate law provisions with respect to electronic communications. As amended, NRS 78.315 and NRS 78.320 no longer include the requirement that all participants to be able to hear one another. Instead, these statutes now permit participation “through electronic communications, videoconferencing, teleconferencing or other available technology which allows the members to communicate simultaneously or sequentially.” 2011 Nev. Stat. 776-77.